SAT nixes Sebi order on Linde India, asks firm to appear for document check

Market regulator had asked NSE to do a valuation of the company and its related party transactions

The Securities Appellate Tribunal (SAT) on Wednesday set aside an interim order by the market regulator against Linde India, an industrial gases and engineering company.

The Securities and Exchange Board of India (Sebi) had directed the National Stock Exchange to conduct a valuation of Linde India and its related party transactions (RPT) following complaints by the shareholders.

SAT has asked the company to appear for inspection of documents before Sebi on May 27 and then file a reply within one week.

 

The matter pertains to various agreements and transactions by Linde India with its related parties Praxair India and Linde South Asia Services.

 

Sebi had directed the company to seek shareholder approval if the aggregate value of the RPT exceeds materiality thresholds.

The company and its independent directors had earlier moved the Bombay High Court against the summons and investigation initiated by Sebi. However, they had not got a stay from there till the issuance of the order by Sebi.

In an April 29 order, Sebi said that the company did not seek shareholder approval before executing material RPTs. The company did not make any valuation available to the board when the decision to award future businesses to a related party was made, it said.

Shares of Linde India fell 4.2 per cent to end at Rs 9,284 on the BSE, valuing the firm at Rs 79,174 crore.