IndiGo’s parent settles case with securities regulator
Indian low-cost carrier IndiGo’s parent Interglobe Aviation has agreed to pay Rs21m ($288,000) to India’s securities regulator to settle a case involving compliance violations alleged by a co-founder of the airline. Interglobe is making the settlement “without admitting or denying the findings of fact and conclusions of law”, according to a 9 February settlement order signed by G. Ramar, an adjudicating officer at the Securities and Exchange Board of India. The case relates to allegations raised by Indigo co-founder Rakesh Gangwal of violations relating to corporate governance norms, related party transactions, and timely disclosure of “important information” to the company’s board. In addition, Gangwal alleges misrepresentation in the company’s red herring prospectus dated 16 October 2015. Indigo launched an IPO in October 2015, raising Rs12.7b. Finally, Interglobe was accused of “failure… in making timely disclosure of material information which was likely to have a significant market reaction”, which would be in violation of SEBI’s listing obligations and disclosure requirements.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2021-02-11/unaligned/200bindigo2019s-parent-settles-case-with-securities-regulator
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IndiGo’s parent settles case with securities regulator
Indian low-cost carrier IndiGo’s parent Interglobe Aviation has agreed to pay Rs21m ($288,000) to India’s securities regulator to settle a case involving compliance violations alleged by a co-founder of the airline. Interglobe is making the settlement “without admitting or denying the findings of fact and conclusions of law”, according to a 9 February settlement order signed by G. Ramar, an adjudicating officer at the Securities and Exchange Board of India. The case relates to allegations raised by Indigo co-founder Rakesh Gangwal of violations relating to corporate governance norms, related party transactions, and timely disclosure of “important information” to the company’s board. In addition, Gangwal alleges misrepresentation in the company’s red herring prospectus dated 16 October 2015. Indigo launched an IPO in October 2015, raising Rs12.7b. Finally, Interglobe was accused of “failure… in making timely disclosure of material information which was likely to have a significant market reaction”, which would be in violation of SEBI’s listing obligations and disclosure requirements.<br/>
