[aaykarbhavan] source Business standard

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SC quashes criminal trial of Toyota directors

BS REPORTER New Delhi, 13 November The Supreme Court on Thursday quashed the Allahabad High Court order allowing the criminal trial of the directors of Toyota Motor on a complaint of a buyer that the airbags of the Fortuner SUV was defective which caused his driver's death and injury to him. Toyota offered to pay ₹ 15 lakh to the family of the driver who died and ₹ 10 lakh to the owner of the vehicle. Disposing of the appeal, the bench headed by Chief Justice HL Dattu stated that this order would not be a precedent to be cited in other cases. Gautam Sharma, the vehicle owner, filed a complaint against all the directors of the company, without the company being named, for cheating, forgery and criminal conspiracy. The non- deployment of the airbags had allegedly led to the death of his driver and injuries to him in the accident in 2012. Since there was no direct collision, the airbags did not inflate, it is said. The four directors moved the high court for quashing the complaint as they were not directly responsible for the accident, but it refused to do so as the trial court had already taken cognizance of the complaint. The directors— C Kirloskar, Vikram S Kirloskar, Shekar Vishwanathan and Sandeep Singh — then moved the Supreme Court. When the appeal was mentioned before the Chief Justice on Wednesday, the bench had askedthecompanytoarriveata settlementwiththeaffectedparties. SeniorcounselFSNariman had agreed to do so. The offer to pay the compensation was made following this assurance. The court had also observed on Wednesday that the directors could not be vicariously made liable in a criminal complaint unless their specific role is evident. The principle of vicarious liability is found only in the law of torts. There have been quite a few casualties related to Toyota cars in the capital this year. For full reports, visit, www. business- standard. com

 

New listing rules: Sebi to require more disclosures JAYSHREE P UPADHYAY Mumbai, 13 November The Securities and Exchange Board of India ( Sebi) might soon require ' persons acting in concert' as defined in the exchange listing rules to disclose their Permanent Account Numbers. The move is part of new transparency standards to be included in these regulations. These are part of the subjects before the Sebi board meeting the coming Wednesday. The listing agreement is currently a contract between a stock exchange and acompany listing on it. Replacing the agreement with aregulation makes it more enforceable, Sebi chairman UK Sinha had said. Sources in the know say the board will also discuss regulations for uniform disclosure of shareholding patterns, beside quarterly and annual results to prevent selective leakage of price- sensitive information. More disclosures from persons acting in concert and promoters would ensure more accountability towards their shareholders, it is felt. "Companies end up not disclosing losses or these are disguised in a way that is impossible for a retail investor to calculate," said a source. Proxy advisory firms and chartered accountants have observed instances of non- uniform disclosure. For example, if a companys earnings have fallen in a given quarter from that in the year before, the company sometimes gives year- to- date numbers, from which it becomes more difficult to calculate the earnings decline. "There is no valid excuse for companies to have an asymmetry of information. Sebi's stance is that there should be a uniform format and timely dissemination of information, to ensure the same information is available to all sets of investors at the same time," said J N Gupta, managing director at Shareholders Empowerment Services, a proxy advisory firm. On the shareholding pattern, there have been instances where the stake of Life Insurance Corporation ( LIC), for instance, have been included by some companies as the stake of domestic insurance companies, while other listed entities have listed it under the stake of financial institutions. Speaking on the sidelines of an event, Sebi member Prashant Saran stated the regulator was also revamping other parts of the listing agreement. "To build trust, we are reviewing Clause 36 of the agreement, under which corporates have to disclose nonevents... (it was) just filling in the blanks till now. Under the new norms, corporates would be required to disclose nonevents such as loss of market share or technology obsolescence on a periodic basis to shareholders through an exchange filing," he said. At a recent meet, V Sundaresan, chief general manager, Sebi, stated they were moving towards a rulebased environment. " Clause 36 currently, by and large, is still a principle… We found instances at stock exchanges that companies were not disclosing specifics about company events; the disclosure requirements were being met only in principle," he said. REVAMP OF LISTING NORM |Sebi to mandate uniform disclosure of quarterly and annual results |Sebi to mandate a set format for filing of shareholding pattern |PACs and promoters could be asked to disclose PAN details |Sebi to make ' nonevent' reportable

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