CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Indian law tribunal stays hefty penalty on MARUTI Suzuki

By Munikoti Rochan

07:41, 23 November 2021

Maruti Suzuki's Vitara Brezza compact SUV on display at Auto Expo 2020 in India
Maruti Suzuki Vitara Brezza compact SUV on display at Auto Expo 2020, India – Photo: Shutterstock

India’s National Company Law Appellate Tribunal (NCLAT) on Monday stayed the INR2bn ($26.9m) penalty imposed on automaker Maruti Suzuki by the nation’s competition regulator.

In its order, NCLAT also directed Maruti Suzuki India (MARUTI) to deposit 10% of the fine with the Registrar of the appellate tribunal within three weeks.

The tribunal further ruled that the firm’s case, challenging the Competition Commission of India’s (CCI) penalty, be listed ‘for admission’ on 15 December 2021.

India’s largest carmaker has a market capitalisation of around INR2.37trn on the National Stock Exchange (NSE), where its stock has advanced some 2.4% so far this year.

Anti-competitive conduct

In August, India’s antitrust watchdog imposed the fine on the country’s largest carmaker for using its dominant position to prevent dealers from offering extra discounts to customers.

COIN

121.73 Price
+1.000% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.29

VODl

0.71 Price
-1.270% 1D Chg, %
Long position overnight fee -0.0253%
Short position overnight fee 0.0033%
Overnight fee time 22:00 (UTC)
Spread 0.0035

AMC

6.86 Price
+0.150% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.07

NVDA

483.00 Price
+0.170% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.27

The CCI ordered Maruti Suzuki India (MSIL) to “cease and desist” from such “anti-competitive conduct” and had directed the company to pay an INR2bn fine.

The penalty followed a CCI probe that found that MSIL had a ‘discount control policy’ for dealers, whereby they were dissuaded from offering extra discounts and offers to potential car buyers.

Only MSIL had the authority to approve additional dealer discounts. Showrooms found violating its rules were threatened with the imposition of a penalty on the dealership and its staffers. Maruti’s behaviour resulted in an “appreciable adverse effect on competition within India”, the regulator had said in its statement.

Read more: India’s Vodafone (IDEA) follows Airtel’s suit, hikes tariff

 

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading