Sebi to probe whether Maruti deal broke law
Market regulator Sebi has so far not found any violations of law by the Maruti Suzuki management on its decision to hand over the proposed Gujarat plant to parent Suzuki but will examine the issues, source said.
Market regulator Sebi has so far not found any violations of law by the Maruti Suzuki management on its decision to hand over the proposed Gujarat plant to parent Suzuki but will examine the issues, source said.
Top sources said that the market regulator, while finding no technical violation in the car company’s board decision of January 28, has decided to look into the matter, following the outcry by institutional investors that include at least four insurance firms and 12 mutual funds.
Sebi is understood to have sought details about the development from Maruti, which have been answered to by the carmaker.
The board of the company will meet on Saturday against the backdrop of the intense battle between the firm and institutional investors.
A majority of the independent directors on Maruti’s board are understood to have opposed the decision to give the new plant to Suzuki and have also made their displeasure known to the company management by lodging a “strong protest”.
The independent directors are corporate lawyer Pallavi Shroff, former Ranbaxy chief executive D S Brar, NHAI chairman R P Singh and ex-PwC head Amal Ganguli.
Maruti management, however, is steadfast in its insistence that the deal remains profitable for the company and investors. “It is a win-win proposition and we are not reconsidering it,” company MD & CEO Kenichi Ayukawa told TOI. “We are not hiding anything, and have nothing to hide. We are ready to explain our position again if the need be,” he said when asked if the company is prepared to explain its po sition to Sebi.
News Source: Times of India