The market regulator said Etihad Airways' purchase of a 24 percent stake in Jet Airways (India) Ltd did not amount to a change in ownership and thereby ruled the Abu Dhabi-based carrier does not need to conduct a tender offer for shares in the domestic carrier.
The ruling comes after the Securities and Exchange Board of India (Sebi) had issued a show cause notice to Etihad in February asking the Abu Dhabi airline on why it should not have to make a tender offer to Jet public shareholders as part of India's takeover code.
Sebi was examining whether the share sale agreement between the two airlines amounted to an acquisition of joint control in the Indian airline.
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