Autoinfoz » India Car News » Maruti Suzuki » In scuffle Maruti Suzuki, fund managers gets tone of voice

In scuffle Maruti Suzuki, fund managers gets tone of voice

31 March, 2014
Bookmark and Share

In constraining automaker Maruti Suzuki India Ltd to backtrack on a dubious handling arrangement with its Japanese guardian, an aggregation of Indian store chiefs scored an uncommon win that messengers expanded activism for an Indian reserve industry long seen as bashful.

Crosswise over developing markets, shareholder activism has a tendency to be extraordinary, with troubled moguls normally communicating discontent by dumping their shares. On account of Maruti, that might have implied jettisoning an organization that offers a large portion of the traveler autos in India and is a staple of institutional portfolios.

In scuffle Maruti Suzuki, fund managers gets tone of voice

"This particular episode has brought many of the fund managers and institutions together," said Chandresh Nigam, chief executive of Axis Asset Management. In India, controllers have since a long time ago attempted to compel store administrators to be more vocal. Securities Exchange Board of India (SEBI) Chairman U K Sinha has condemned cash chiefs for not conforming to a 2010 necessity that supports vote at yearly gatherings.

"Normally, just single institution acting will not work anyway. The next stage should be if we can formalize or semi-formalize a platform," Nigam said.

"Shareholder activism has been gaining popularity in India and Maruti just cements that," said Simone Reis, co-head of M&A at law firm Nishith Desai Associates. "Just because a promoter is a bigwig doesn't mean the investors won't voice their concerns," she said.

"These are two independent things. Some investor investing in liquid or treasury products is independent of our duty which is to take care of the retail investor," said Sundeep Shikka, president and CEO of Reliance Capital Asset Management Ltd, which was among the group to take on Maruti.

By Abhishek
Total Views : 268  
Post a Comment

Rate this post :  
Verify Code : *

Recent Post
Toyota aims to introduce mid-size sedan for India to undertake Honda City
City, Grand i10, Celerio, Zest waiting period extends to 4 months
Audi 2015 Autumn Collection launched in the presence of Katrina Kaif
Maruti Suzuki plans to make hybrids technology at affordable offers on cars from Alto to Swift hatchback
Honda CR-V facelift released prior to probable Paris debut
Mercedes-Benz C-Class plug-in hybrid at 42.5kmpl released
Next Generation Nissan Micra expected to launch in overdue 2016
Mahindra & Mahindra Begins pre-booking of Scorpio via Snapdeal partnership
Maruti Suzuki Appointed RS Kalsi as head of domestic marketing & sales
Pajero Sport Limited Edition on special offer for just Rs 23.99 lakh
Auto Expo 2017
Fiat Auto Expo News (1)
Mahindra Auto Expo News (1)
Toyota Auto Expo News (1)
Skoda Auto Expo News (1)
Nissan Auto Expo News (1)
BMW Auto Expo News (1)
Hyundai Auto Expo News (1)
Jaguar Auto Expo News (1)
Honda Auto Expo News (1)
Car News Auto Expo News (7)

Company News
Ashok Leyland News (7) Aston Martin News (4) Audi News (38) Bajaj News (3)
Bentley News (1) BMW News (53) Chevrolet News (27) Datsun News (6)
Ferrari News (4) Fiat News (20) Force News (2) Ford News (44)
Hindustan Motors News (4) Honda News (2) Honda News (72) Hyundai News (66)
Hyundai Elantra News (2) Isuzu News (5) Jaguar News (22) Jeep News (2)
Kia News (1) Lamborghini News (9) Land Rover News (10) Lexus News (1)
Mahindra News (50) Mahindra Renault News (1) Mahindra Reva News (3) Maruti Suzuki News (116)
Mazda News (4) Mercedes-Benz News (63) MINI News (2) Mitsubishi News (7)
Nisaan Cars News (3) Nissan News (55) Porsche News (14) Renault News (38)
Rolls-Royce News (3) Skoda News (36) Tata News (88) Toyota News (41)
Volkswagen News (50) Volvo News (12)
Other Category News
Car News News (10) Hyundai Elantra News (1)
Top Cars Models in India