SpiceJet’s Singh pays ~2 lakh to settle case with Sebi

SpiceJet promoter Ajay Singh has settled proceedings against him by the Securities and Exchange Board of India (Sebi) in a matter related to alleged disclosure lapses in the acquisition of equity shares by paying around ~2 lakh.

On January 15, 2015, SpiceJet informed the BSE that Kalanithi Maran and his associates had decided to transfer the ownership and management control of the airline to Singh. After this, Singh reportedly moved Sebi to make a case for exemption from an open offer.

Typically, an entity is supposed to make an open offer while acquiring management control or more than 25 per cent stake or voting rights in a listed firm. But the regulator can grant an exemption under Section 10 of the Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, in the interest of investors. Sebi had exempted the new promoters from making the offer to minority shareholders after receiving a nod from the civil aviation ministry.

The shares were officially acquired on February 23, 2015. According to sources, the company had to file the disclosure to stock exchanges within four days, according to takeover norms. But it filed the disclosure on September 2, 2016.

Adjudication proceedings intimated for “his failure to make disclosure under regulation 10(6) of the Sebi for the transaction dated February 23, 2015...," Sebi said on Monday. The advisory committee considered the settlement terms proposed by Singh “and recommended the case for settlement upon payment of ~2,02,500 by the applicant towards settlement terms...” the order said.