often provides relaxation in preferential issue pricing and open offer norms when government infusion happens in state-owned companies, particularly banks.
Sources said similar relaxations were being sought in the case of Jet Airways
in order to give a lifeline to the cash-strapped airline.
According to Sebi’s takeover code, change in control at a listed company triggers an open offer to purchase an additional 26 per cent stake. Similarly, capital infusion in a listed company has to be done under Sebi’s pricing formula.
SBI had last week said lenders were considering a resolution plan for Jet Airways to ensure its long-term viability.
The public sector lender statement, which came a day after crisis hit the airline, said discussions were “progressing well” with stakeholders on a comprehensive resolution plan, which contemplates equity infusion and consequent changes in its board of directors.
“There are rising concerns over the financial health of Jet Airways, whose shares have also taken a beating at the stock exchanges. We would like to state that lenders are considering a restructuring plan under the RBI framework for resolution of stressed assets that would ensure a long-term viability of the company,” SBI had said in a statement.
“Any such plan would be subject to approval of boards of the lenders and subject to adherence and clearance, if required, from the RBI and/or Sebi
(takeover code, ICDR regulations) and Ministry of Civil Aviation and in compliance with all regulatory prescriptions,” the statement had said.