Swiggy provides special indemnities to directors of SoftBank, Accel and Prosus, ahead of IPO

Swiggy has granted special indemnity to board members representing key investors SoftBank, Accel, and Prosus, shielding them from regulatory risks stemming from violations by the food ordering platform, ahead of its initial public offering. Directors appointed by the three funds would not be held liable for any failure or lapses in following the rules and the other directors, including the founders, would be fully responsible for such lapses, according to the draft red herring prospectus (DRHP) filed by Swiggy on September 27.

Why the protection?
With many new-age companies increasingly getting entangled in regulatory disputes, many private equity investors are demanding such indemnities from companies, legal experts said.