SAT Admits Linde India’s Appeal Against SEBI's Order In Related Party Transactions Case
The SAT has granted SEBI four weeks to file its reply to Linde India's appeal.
The Securities Appellate Tribunal will hear the final submissions in Linde India Ltd.'s case challenging the order of the Securities and Exchange Board of India in the related party transactions case on Oct. 15.
Linde India is in a legal dispute with SEBI over some transactions with related companies like Praxair India Pvt. and Linde South Asia Services Pvt.
During the hearing on Wednesday, the SAT admitted Linde's appeal and granted SEBI four weeks to file its reply to Linde India's appeal. Also, Linde India will have two weeks to file a rejoinder.
Additionally, Linde India has been allotted four weeks to file objections to an impleading application submitted by Amit Gadgil, a shareholder.
In May, the SAT overturned a previous SEBI decision and asked the NSE to hire an expert to evaluate these transactions because of concerns raised by shareholders.
SEBI member Ashwani Bhatia expressed worry that Linde India was trying to proceed with transactions that shareholders had already rejected, despite receiving legal advice.
Bhatia emphasised that these transactions needed proper valuation to determine if they required shareholder approval.
The NSE was ordered to appoint a registered valuer to assess the impact of these transactions, and Linde India was required to cover the costs of this valuation.
SEBI also directed Linde India to review and report on future related-party transactions based on established rules.
Linde India, formerly known as BOC India, specialised in the manufacture and sale of industrial and medical gases. The company had undergone significant changes after being acquired by Linde AG in 2006 and later merging with Praxair Inc. in 2018 to form Linde Plc.
Under the new regulations, Linde India was required to disclose the findings of the valuation report to its audit committee and board of directors within two weeks of receiving it.
This step was aimed at improving transparency in how the company managed transactions with related parties and enhancing corporate governance.
