Delhi High Court on Thursday asked the Bombay Stock Exchange (BSE) and Securities and Exchange Board of India (SEBI) on what decision they have taken with regard to the application of SpiceJet and Kalanithi Maran for issuance of stock warrants in the airline to him.
Justice Manmohan Singh issued notice to BSE and Sebi asking them to inform him on April 26 “outcome of decision, if taken, in view of order passed on March 14” by the court.
The order was passed after the lawyers for SpiceJet and Maran told the court that so far no decision has been taken by BSE and Sebi and the time of two weeks given by the judge has already expired.
The court on March 14 had asked BSE to decide the application for issuance of stock warrants within two weeks of filing of the requisite paperwork by the airline.
The March 14 interim order was issued on a plea of Sun group head Kalanithi Maran claiming that he and his KAL Airways were to be issued stock warrants in Spicejet by the airline under a 2015 sale purchase agreement (SPA) which led to change in ownership of the budget carrier.
Maran had sought that the warrants be issued in terms of an application made to BSE on September 18, 2014 and which had been approved by company’s board on September 24, 2014.
The judge in his order had said, “I am of the view that at present, there is no impediment if BSE may consider application of September 18, 2014, in light of change of circumstances, because of the reason that earlier respondent 1 (Spicejet) did not provide clarification and now since clarification is available coupled with subsequent events, application dated September 18, 2014 can be considered by BSE.”
Under the 2015 SPA, Maran and KAL had transferred their entire 350,428,758 equity shares (58.46 per cent stake) in the airline, to Ajay Singh.