India's securities market, SEBI, has issued a 'please explain' notice to Etihad Airways over its minority acquisition of Jet Airways.
The Securities and Exchange Board of India (SEBI) issued a show cause notice on Wednesday, questioning if Etihad violated takeover rules when it acquired a 24 percent stake in Jet Airways last year.
According to Gulf News, SEBI has reportedly asked Etihad why it should not make a tender offer to Jet Airways public shareholders as part of takeover rules.
Etihad has 21 days to respond to the notice.
An Etihad spokesperson stated that the airline is "working very closely with the Indian Government and regulatory authorities to ensure all the requirements of the new foreign direct investment legislation is met," the report said.
Etihad first announced the minority acquisition in April 2013, but the deal was not announced until November 2013 during the Dubai Airshow.
According to the report, the deal came under increasing scrutiny after the Indian government changed foreign ownership regulations of its tightly controlled aviation sector.