JOIN USJet Airways on Wednesday said it has obtained regulatory extension to meet the mandatory 25 per cent public shareholding norm in the private airline.
In a notification filed with bourses, Jet Airways stated that market regulator Securities and Exchange Board of India (Sebi) on May 13, 2013 relaxed the requirement of 12-week cool-off period after the proposed inter se transfer of shares to enable the company undertake the offer for sale through stock exchange mechanism to achieve the minimum level of public shareholding as required under the Securities Contracts Regulations, 1957.
For the private listed companies, the deadline to meet the Sebi-stipulated public shareholding norm is June-end, while for the state-run listed firms it has been relaxed to 10 per cent, which is to be met by August. These rules are expected to improve corporate governance and help in protecting the interest of the minority shareholders.
Further, Jet Airways said reportedly on April 30, 2013 that it will bring down the personal holding of Chairman Naresh Goyal to 51 per cent in order to meet the 25 per cent floating share norms by making the group holding company Tail Winds sell excess shares to fund houses and other investors.
However, the private airline’s proposed 24 per cent stake sale to Gulf carrier Etihad Airways is yet to go through and hence the extension from Sebi.