In a major step towards bringing greater regulatory clarity for M&A deals, Sebi plans to put in place new guidelines to define 'bright lines' identifying the change of control in such transactions.
The COMPAT has also issued a notice to the Competition Commission of India (CCI) and Jet Airways seeking an explanation as to what were the grounds on which this deal was cleared.
The CCI has been considering this deal for quite some time now, leading to questions on why it was taking so long for it to come to a conclusion on the pact.
Jet Airways, which posted its biggest ever quarterly loss, expects the deal to close by the end of the calendar year. While the cabinet has cleared the deal, the Competition Commission of India‘s (CCI) approval is still pending.
Union Minister of Aviation Ajit Singh says, the biggest positives for the aviation sector is marked by two landmark pacts - Tata-Singapore Airlines and Jet-Etihad deals.
Government sources indicate that the Jet-Etihad deal may be ready to take off soon as the Cabinet Committee on Economic Affairs is likely to take up as early as October 3.
Also, this is the first FDI deal in aviation space and has its own complexities. Other foreign carriers may switch gears after they find Indian government committed to attract foreign investors, they say.
Etihad Airways, which is seeking regulatory approval for its planned Rs 2,058 crore stake in India's Jet Airways, today said that it is awaiting a final approval from the Indian authorities for the deal which could enhance its global reach.
No-frills carrier SpiceJet is in active discussions with Singapore-based budget carrier Tigerair for a possible stake sale even as they are set to sign a code share agreement soon, sources said.
SpiceJet stocks gained on Wednesday after reports that Emirates may be reviving its interest in buying stake in the Indian airline. The foreign airline is reportedly picking up cues from Jet-Etihad deal for its own buyout stake.
Intro: Reacting to the FIPB go-ahead, a panel of experts explain that while the clearance was positive, the whole process resulted in wasting the time of various government departments and officials involved. Amber Dubey of KPMG calls for a debate on the number of approvals needed and a probable discussion regarding the Mayaram report.
The Foreign Investment Promotion Board has cleared the much awaited Jet-Etihad deal, but with riders, say sources. Jet Air is likely to get Rs 2058 by offloading 24 percent stake to Etihad.
Shares of Jet Airways surged 17 percent on the hopes of FIPB clearing the deal soon. Earlier in the day, Etihad had agreed to cut the number of directors in the board to two members.
Under flak from several MPs over the Jet-Etihad deal, government on Monday said it had "no role to play" in the sale of Jet's slots at London Heathrow airport to the Abu Dhabi-based airline.
CNBC-TV18's Rituparna Bhuyan and Siddharth Zarabi report though the Jet-Etihad deal may be facing headwinds on several issues, forceful policy intervention by commerce and industry minister Anand Sharma has ensured the proposed JV will receive approval.
The government has no role in slot allocation at Heathrow airport and Jet Airways had obtained necessary approvals before selling its slots to Etihad
Etihad Airways is likely to revise its agreement in its Rs 2,058 crore deal with Jet Airways. The reworked arrangement will then be submitted to Indian regulatory authorities by the end of July.
The Central Vigilance Commission (CVC) sought a factual report from the ministry of Civil Aviation on a complaint of corruption in the deal between Jet Airways and Etihad Airways.
The Rs over Rs 2000 crore Jet-Etihad deal was signed on April 24. But due to regulatory and political concerns, both entities have to amend certain clauses in the agreement and make fresh applications to the Sebi and FIPB.
Cabinet note on India-UAE bilateral air traffic enhancement pact will be ready in 7-10 days. Sources told CNBC-TV18's Sumit Jha that the note will not go forinter ministerial comments.
Civil Aviation minister Ajit Singh lashed out at political parties and said the Jet-Etihad deal will go through after both parties fulfil regulatory requirements.
Civil aviation minister Ajit Singh met Congress President Sonia Gandhi amidst concerns over the deal surroundinf Jet Airways and Etihad Airways.
CNBC-TV18's Sumit Jha reports, quoting sources, that civil aviation minister Ajit Singh has come out in support for the Jet-Etihad deal and Jet Airways Chief Naresh Goyal met the FM on Wednesday.
The BJP on Wednesday demanded that the government order a CBI inquiry monitored by the Supreme Court to find out the manner in which the Jet-Etihad deal was carried out in "half-cooked" and "objectionable" manner.
Responding to Swamy's allegation, AirAsia CEO Tony Fernandes said that the Indian aviation industry is missing great opportunities due to vested interests