SEBI may re-examine order on Jet-Etihad: report
14 December 2013
The Securities and Exchange Board of India (SEBI) is likely to re-examine its earlier order on Jet Airways' sale of a 24-per cent equity stake to Abu Dhabi's Ethad Airways, in the light of the Competition Commission of India (CCI) raising concerns over possible violation of section 43 (a) of the Companies Act, CNBC-TV18 said in a report.
The news channel quoted sources as saying that the market regulator is likely to approach the CCI seeking clarity on its order.
The CCI last month approved the deal, involving Etihad's purchase of 24 per cent stake in Naresh Goyal-led Jet Airways, although it had raised concerns whether the deal had violated the open offer clause and the 25 per cent trigger.
The CCI clearance, however, has been challenged in the Competition Appellate Tribunal (Compat) by former executive director of national carrier Air India, Jitendra Bhargava, while Lok Sabha MP Subramanian Swamy has written to the SEBI asking that Etihad be considered a 'person acting in concert' with Jet's current promoters for this deal.
The hearing in this case is now complete and an order is expected by December end and this may mean that Jet and Etihad could be penalised to the extent of 1 per cent of their total turnover or the asset value whichever is higher.
CCI chairman Ashok Chawla, meanwhile, said that the two carriers have been issued show-cause notices on a separate issue relating to their certain commercial agreements.
According to CNBC-TV18, SEBI is likely to seek information from the CCI as to how Etihad may have joint control.