The drop in the share price of InterGlobe Aviation, the company that operates IndiGo, has come under the regulatory scanner.
IndiGo’s stock price fell 6.3 per cent on Friday before the company announced that Aditya Ghosh would step down as IndiGo president that evening. According to sources, the market regulator Securities and Exchange Board of India (Sebi) has asked stock exchanges to furnish information of share price data for the last one month to check for any possible violation of insider trading norms.
Sources said that the regulator had also asked exchanges to provide details of certain investors who traded in the scrip and those who were aware of the development. “We have received information regarding trades made during the period along with consolidated data of trading volumes and pattern of price movement. We are studying and looking into the data provided,” said a regulatory official privy to the development.
Sources said that Sebi wants to check possible violation of insider trading norms since the company’s senior management was privy to this price-sensitive information of Ghosh’s resignation.
According to officials, the volatility in InterGlobe’s share price in last one week generated red flags at the Sebi’s surveillance system. IndiGo shares had touched a high of Rs 1,505 on April 23 and a low of Rs 1,400 on April 27 on the BSE.
IndiGo announced on Friday after the close of markets that Ghosh would step down as president and Rahul Bhatia, a promoter of the company, would take over as interim CEO.
Ghosh stepped down as director effective April 26, while his resignation as president would come into effect from July 31.
Sources said the company has adhered to compliance of various disclosures under the listing agreement. “At present, there are no irregularities around compliance, as all disclosures were in place and on time,” said another person in the know.
