SEBI may re-examine its order on Jet-Etihad: Sources

Market regulator SEBI may look to re-examine its order on Jet Airways and Abu Dhabi carrier Etihad deal. Sources told CNBC-TV18 SEBI is likely to approach the Competition Commission of India (CCI) seeking clarity on its order. The channel had earlier reported that the CCI has raised red flag over what appeared to be a prima facie case of violation of section 43 (a) by Jet-Etihad. The deal, involving Abu Dhabi carrier Etihad’s purchase of 24 per cent stake in Naresh Goyal-led Jet Airways , was approved last month by the Competition Commission of India (CCI). 

This clearance has been challenged in the Competition Appellate Tribunal (Compat) by national carrier Air India’s former Executive Director Jitendra Bhargava , while BJP leader Subramanian Swamy has written to the SEBI asking that Etihad be considered a ‘person acting in concert’ with Jet’s current promoters for this deal. CCI Chairman Ashok Chawla said that the two carriers have been issued show-cause notices on a separate issue relating to their certain commercial agreements. Sources say SEBI is likely to seek information from the CCI is to how Etihad may have joint control. 

However, they add that it is up to the government to take a final call on the much-talked about mega aviation deal. Jet Airways stock price On December 13, 2013, Jet Airways closed at Rs 272.75, down Rs 20.65, or 7.04 percent. The 52-week high of the share was Rs 688.60 and the 52-week low was Rs 270.20. The latest book value of the company is Rs -27.75 per share. At current value, the price-to-book value of the company was -9.83.

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