According to sources, the shareholders agreement and the investment agreement are likely to be revised. There is no major change to the commercial cooperation agreement and the government code pact that the two companies have filed.
Etihad Airlines agreed to cut number of directors on Jet Airways Board to two posts under their Rs 2058 crore deal. This will give the Indian promoters effective control of the carrier.
Jet Airways and Etihad Airways officials were not immediately reachable for comment on the market speculation. A spokesman for India's finance ministry, which oversees FIPB, declined to comment.
Allowing Fresenius Kabi Oncology to initiate the delisting process, Sebi however, said that the company would have to take into account its pre-OFS (Offer for Sale) promoter holding of October 2012 to determine the minimum number of shares to be acquired for the delisting.
The long-pending Jet-Etihad deal envisaging foreign investment of Rs 2,058 crore will come up before Foreign Investment Promotion Board (FIPB) for approval on July 29.
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.
Telecom stocks surged on the back of the FDI announcement. But it fell later almost to 4.3 percent as investors booked profits and washed out all gains.
India's weakest economic growth in a decade and a record high current account deficit have made the rupee the worst-performing emerging Asian currency so far this year.
Industry bodies said that FDI norms show that reforms were underway to boost economic growth and will bring in fresh investments to the country.
"Revenue department is looking into the clause of beneficial ownership of the Jet-Etihad deal. The Department will have to see the tax implications of the deal whether it is meant to evade tax," a finance ministry official told PTI.
SP Tulsian, CEO sptulsian.com expects Strides Arcolab and Garware Wall Ropes to earn better returns ahead.
The snag is that Etihad has proposed to Jet to start flying from 6 more Indian cities over and above the existing 9 Indian cities they already operate from.
The Foreign Investment Promotion Board (FIPB) cleared seven FDI proposals in Indian pharmaceutical companies and deferred three other cases on ownership control.
The Foreign Investment Promotion Board (FIPB) had approved these proposals in its meeting on June 14, when it deferred a decision on Jet Airways' application to make a preferential allotment of 24 percent of equity shares to Etihad Airways.
India rejected the foreign direct investment (FDI) proposal of commodity exchange MCX. The Foreign Investment Promotion Board's (FIPB) meeting on June 14 took this decision.
Responding to Swamy's allegation, AirAsia CEO Tony Fernandes said that the Indian aviation industry is missing great opportunities due to vested interests
Elaborating that they were two different deals, the PMO added that inter-government agreement on bilateral air traffic seat entitlements and concerns the governments of the two countries while the Jet-Eithad deal is a private agreement between two private entities.
Ajit Singh said the group has applied to the civil aviation ministry for a no-objection certificate (NOC) and given the names of all top new appointees for security clearance to the Union home ministry, as per the laid down regulations
The concerned regulators were addressing the issues surrounding the Jet Airways-Etihad Airways deal, said civil aviation minister Ajit Singh. SEBI and FIPB were looking into the matter, he added.
The Prime Minister's Office has sought clarifications from ministries concerned, including Commerce and Industry, on the proposed Rs 2,058 crore Jet-Etihad deal.
The government has approved 16 projects envisaging foreign investment worth Rs 1,647 crore, while deferring Punj Lloyd's proposals for lack of security clearance.
Mehraboon Irani, Nirmal Bang Securities believes Jet Airways is a good trading stock as the FIPB is likely to give its nod to the Jet-Etihad deal as India is 100 percent dependednt on foreign capital.
Post the Etihad deal announcement, Naresh Goyal, Jet Air's chairman said the deal will further strengthen the airline's balance sheet and will also open up more avenues for improving revenues. "The deal will also accelerate returns to sustain profitability," he had added.
The Foreign Investment Promotion Board (FIPB) and Sebi have sought clarity on onwership from Jet Air on 24% stake sale to Etihad.
Concerned over spate of acquisitions of domestic pharma firms by multinationals, the Department of Industrial Policy and Promotion will soon send a comprehensive proposal to the PMO for review of the current policy for FDI in existing drug companies.