IndiGo breached governance norms, finds Sebi probe

TIL Desk/Business/New Delhi/ A preliminary probe by markets regulator Sebi has suggested prima-facie violations of corporate governance and listing disclosure norms in certain related party transactions involving budget carrier IndiGo’s parent firm InterGlobe Aviation Ltd, sources said. While the company said it has not received any communication from Sebi in this regard, shares plunged sharply in afternoon trade on Tuesday.

IndiGo has been facing a probe by the Securities and Exchange Board of India (Sebi) ever since a public spat came to light between two founders of the airline, including over certain related party transactions involving one of the warring promoters. The sources said that a preliminary probe has now suggested violation of certain listing disclosure norms as also of fair corporate governance practices at the company.

InterGlobe shares closed 4.68 per cent lower at Rs 1,376.70 apiece on the BSE, after hitting an intra-day low of Rs 1,334 in afternoon trade after a sudden plunge following media reports about the Sebi probe. “We would like to state that the news item published in some media reports is factually incorrect and the company has not received any communication from Sebi in this regard,” the company said in a filing to the BSE.