InterGlobe Aviation settles case with SEBI over norm violations


InterGlobe Aviation Ltd, the parent company of IndiGo, has paid Rs 2.1 crore to SEBI towards settlement in a case over alleged violations of corporate governance norms.

The Securities and Exchange Board of India (SEBI) had conducted an investigation based on several complaints from Rakesh Gangwal, co-founder and director of Interglobe Aviation.

The complaints alleged several violations regarding compliance of corporate governance norms, related party transactions between the company and the ‘IGE Group’, timely intimation of important information to the board of directors of InterGlobe and misrepresentation made by the the company in its Red Herring Prospectus dated October 16, 2015.

The company had last month file an application before the capital market regulator seeking to close the case.

SEBI had issued a show-cause notice to the company last year asking it to explain why action should not be initiated against it.