Naresh Goyal-led Jet Airways is learnt to have amended the complex shareholders agreement with Etihad following concerns raised by market regulator Securities and Exchange Board of India (SEBI).
On June 14, the Foreign Investment Promotion Board (FIPB) had deferred a decision on Abu Dhabi-based Etihad Airways' plans for a 24% stake buy in Jet Airways. The board had sought more details on "effective control" and "ownership".
Sources said the clause stipulating that Jet and Etihad could vote together as persons acting in concert had been removed in the new agreement and that Etihad has to maintain a minimum 15% shareholding at all times. Senior Jet and Etihad officials are learnt to have met Sebi officials on Tuesday.
Sources said FIPB had deferred a decision after discrepancies had been noticed in the agreement signed by the two carriers and the application submitted to the FIPB.
The issue lay in the number of foreign nationals on the Board which, as per rules, cannot exceed more than one-fourth of the total Board strength.
Concerns were also raised on the place of business being moved from India to Abu Dhabi. It was pointed out that the substantial ownership and effective control indicated that Etihad was wielding far more control over Jet than the agreement indicated.