Stock exchanges have sought details from Jet Airways Ltd. after India's second-largest airline deferred releasing its earnings.
Bombay Stock Exchange Ltd. and National Stock Exchange of India Ltd. initiated a coordinated action, issuing a similarly worded letter to the company seeking information about the board meeting held yesterday evening.
“It's in the right direction because last night's communication from the company leaves a lot more questions than the answers,” said JN Gupta, co-founder and managing director at proxy advisory firm Stakeholders Empowerment Services. “Since it's a listed stock, the investors have every right to know the details and the exchanges and regulator should act in unison and seek information from the company.”
The company, in an exchange filing, said it “deferred the matter of consideration of the unaudited financial results for the quarter”. The Jet Airways board's audit committee had refused to approve the financial results “pending closure of certain matters”. Shares of the airline fell as much as 14.5 percent—its second biggest this year.
Among the details sought by exchanges are:
- The reasons for which the audit committee hasn't approved the financial result; details of “certain matters which has been not closed”, as stated in the Aug. 9 filing.
- Any other matters discussed in the board meeting apart from financial results.
- A report said the decision to defer result was taken an hour after the meeting ended and most executive and board members had already left the venue. Under the said circumstances, “confirm who has taken the decision to defer the financial result?”
- When will the adjourned meeting be conducted to consider the financial result?
The BSE advised the company to submit complete information for compliance of rules.
Jet Airways is yet to respond to BloombergQuint's emailed queries.
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