Maruti institutional investors move Sebi

Institutional investors of Maruti Suzuki India on Thursday approached the Securities and Exchange Board of India (Sebi) over the transfer of the car maker’s Gujarat project to its Japanese parent Suzuki Motor, asking the market regulator to intervene in the issue to protect the interest of minority shareholders.

Two individuals, involved with the development, told The Indian Express that the group of institutional investors — mutual funds and life insurance companies — has, through a letter, requested the Sebi to look into the matter in a bid to protect the interests of the minority shareholders and to ensure compliance with good corporate governance norms.

“The problem is that they are converting a listed company into a distributor and it is not in the interest of the minority shareholders,” said one of the signatories in the letter sent to Sebi.

The group of 16 investors has already written two letters to the board of Maruti Suzuki India registering their grievance.