Sebi seeks IndiGo response on charges of Rakesh Gangwal

NEW DELHI: the market regulator, Sebi, asked Indigo to give his comments on certain issues raised by the co-founder and co-promoter of the airline Rakesh Gangwal. The airline will send its response to Sebi shortly.

In a regulatory filing on Wednesday, Indigo told BSE it “has received an email dated September 3, 2019, from Sebi, requiring the company to provide its comments to a letter dated August 30, 2019 (the ‘August 30 letter’) received by Sebi from legal counsel of Rakesh Gangwal, co-founder and director of the company. The August 30 letter reiterates certain issues that Gangwal had previously raised with Sebi and seeks certain directions from it against the company and the IGE (InterGlobe Enterprises) Group on inter-alia, amendment to the articles of association of the company to remove the rights of the IGE Group, past related party transactions (RPT), non-independence of the current chairman, refusal to hold EGM when requisitioned by Gangwal and certain public statements made by the CEO of the company.”

As previously revealed, at the company's recent general meeting held on August 27, 2019, both groups of promoters (including the Rakesh Gangwal Group) have voted in favor of all resolutions, including resolutions to amend the bylaws of the Company company to expand the size of the board to 10 members and appoint the president as independent director of the company. In addition, as of today, the company has implemented a revised RPT policy approved by the company's audit committee and the board of directors, the presentation added.

comments