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Informist, Monday, Sep 23, 2024

 

NEW DELHI – The Supreme Court today refused to interfere with a valuation exercise conducted on Linde India Ltd by a valuer appointed by the National Stock Exchange in a case relating to the company's related-party transactions. 

 

On Sep 13, the Securities Appellate Tribunal had refused to stay the valuation of Linde India and had said that it found no illegality in the NSE's action to appoint a valuer in pursuance of the Securities and Exchange Board of India's directions. However, the tribunal had asked SEBI to issue an order clarifying that both the NSE and its appointed valuer are bound by the Unpublished Price-Sensitive Information confidentiality rules. The tribunal had said that SEBI should ensure that the information disclosed for the valuation remains confidential and is safeguarded under its rules.

 

The case has its genesis from SEBI probing complaints concerning transactions and agreements which Linde India entered into with Praxair India Pvt Ltd, an arm of Praxair Inc, and the joint venture company Linde South Asia Services Pvt Ltd. The complaints alleged that transactions and arrangements undertaken by Linde India with Praxair India were in the nature of material related-party transactions and happening without the approval of Linde India's shareholders.

 

After a preliminary probe, SEBI held in its interim order that Linde India was continuing to execute material related-party transactions without taking shareholder approval. The market regulator had also asked the NSE to carry out a valuation of business foregone and received in terms of the joint venture and shareholder agreements between Linde India and Praxair India. In the appeal against SEBI's order, the tribunal had granted interim relief to Linde India, however, the main case was yet to be decided. 

 

At 1235 IST, the shares of Linde India were up 3.8% at 8,480.60 rupees on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Manisha Baxla

 

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