The Foreign Investment Promotion Board (FIPB) on Monday cleared the Jet-Etihad deal, but with conditions.
According to the revised agreement, Jet-Etihad deal has reduced the number of Etihad directors on the new airline's board to two from three.
The agreement also says major decisions, including appointment of independent directors, the chairman and vice chairman, will be taken on the basis of a majority of votes.
The deal still requires the approval of the Cabinet Committee of Economic Affairs (CCEA). There are also some media reports that the deal has to be cleared by the Competition Commission of India (CCI).
The revised proposal seeks to address the concerns of FIPB and market regulator SEBI with regard to 'effective control' after the foreign direct investment, which will be the largest FDI in the aviation space.
However, there will be no change in the shareholding pattern with Etihad picking up 24 per cent, Jet's majority shareholder Naresh Goyal holding 51 per cent and 25 per cent with others, including institutions and individuals.
The Rs. 2,058 crore investment could lead to other international airlines investing in India while the passengers will get benefit from Etihad's global network.
