SEBI Seeks Response From IndiGo On Rakesh Gangwal’s Latest Letter
The Securities and Exchange Board of India has sought a response from IndiGo operator InterGlobe Aviation Ltd. on a fresh letter by the company's co-promoter Rakesh Gangwal regarding corporate governance issues.
The latest letter from Gangwal came just days after the company's annual general meeting held on Aug. 27.
Gangwal and co-promoter Rahul Bhatia have differences over certain corporate governance matters at InterGlobe Aviation.
In a filing to the stock exchanges on Wednesday, InterGlobe Aviation said SEBI has sought comments on a letter written by Gangwal on Aug. 30.
"The company will provide its response to the SEBI," the filing said.
On Sept. 3, SEBI sought comments from the company on a letter received by the regulator from legal counsel of Gangwal.
According to the filing, the letter reiterates certain issues that Gangwal had previously raised with SEBI and seeks certain directions from the regulator against the company and the IGE Group.
The issues are related to amendment to the company's Articles of Association to remove the rights of the IGE Group, past related party transactions, non-independence of the current chairman, refusal to hold the extraordinary general meeting when requisitioned by Gangwal and certain public statements made by the chief executive officer, it said.
Further, the company said at the annual general meeting held on Aug. 27, both promoter groups have voted in favour of all the resolutions, including those to amend the AoA to expand the size of the board to 10 members and to appoint the chairman as an independent director.
"Further, as on date, the company has in place a revised Related Party Transaction Policy as approved by the company's Audit Committee and the Board of Directors," the filing said.
SEBI is already looking into alleged corporate governance lapses at InterGlobe Aviation after Gangwal, in July, wrote to the watchdog seeking its intervention to address certain issues.
The allegations were rejected by the Bhatia camp.
Gangwal, along with his affiliates holds around 37 percent stake in InterGlobe Aviation, while Bhatia and his affiliates (IGE Group) have about 38 percent shareholding in the company.
Shares of InterGlobe Aviation rose nearly 1 percent to close at Rs 1,641.20 on the Bombay Stock Exchange.