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SEBI is examining the sharp plunge in shares of InterGlobe Aviation, parent of IndiGo, hours before it announced the resignation of its president Aditya Ghosh, officials said.
The Securities and Exchange Board of India (SEBI) is probing a more than 6 per cent plunge in the country’s largest domestic carrier’s shares price on April 27.
Hours after the market close that day, the airline announced the resignation of Ghosh at 7.56 PM. While his resignation as president is effective from July 31, Ghosh quit as a director of the company with effect from April 26, a day before the announcement was made. As per the information available with BSE, the exchange disseminated the company’s filing within 0.05 seconds of its receipt.
SEBI is examining whether there was any delay on part of the company in making the disclosure. Besides, the regulator has already asked exchanges to collate the share price data to examine any possible breach of the insider trading rules, the officials said.
Depending on preliminary examination, SEBI will ask the airline, its promoters and directors and as also the outgoing CEO to provide further clarifications, they added.
When asked for a comment, InterGlobe Aviation, which runs low-cost carrier IndiGo, said it has not received any notification from SEBI. “In any event, please note that IndiGo has compiled with all stock exchange listing requirements relating to Ghosh’s resignation,” the spokesperson added.
On April 27, the company had said that Ghosh would step down as President and Whole Time Director. IndiGo would be announcing its fourth quarter and full year financial results this evening. IndiGo, which has a fleet of 160 aircraft, is the country’s largest airline with a market share of nearly 40 per cent. It operates around 1,000 flights daily.
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