IndiGo flouted rules in some related-party deals, finds Sebi

MUMBAI: InterGlobe Aviation Ltd has violated governance and listing guidelines in some of its related-party transactions (RPTs), a regulatory investigation found, sending shares of India’s largest airline operator plunging.

The Securities and Exchange Board of India (Sebi) has sent its findings to an internal committee for possible penal action, two people aware of the investigation said on condition of anonymity. Shares of InterGlobe, which operates low-fare airline IndiGo, fell as much as 7.6% on the BSE on Tuesday, before closing 4.68% lower at ₹1,376.70, while the benchmark Sensex index fell 0.2%.

“The regulator has found that some of the RPTs, which were considered not material by the company, exceeded 1% of company turnover (the threshold for materiality) and thus needed shareholder nod,” said one of the two people cited above.