 "The Supreme Court denies Linde India’s plea against SEBI-directed valuation, citing confidentiality concerns amid ongoing investigations into related-party transactions.")
The Supreme Court has denied Linde India’s request for relief regarding a valuation process mandated by the Securities and Exchange Board of India (Sebi). This follows the company’s earlier appeal to the Securities Appellate Tribunal (SAT), which supported Sebi’s decision. Sebi instructed the National Stock Exchange (NSE) to appoint a valuer to evaluate Linde India’s business amid ongoing investigations into related-party transactions. Linde India has raised concerns over the potential exposure of sensitive financial information due to the publication of the valuation report. However, the Supreme Court noted that the tribunal had already addressed confidentiality issues. A hearing on Linde’s request to stay Sebi’s order is set for October 15. The company’s shares recently saw a 5 percent increase, trading at Rs 8,602.
The Supreme Court of India recently denied a request from Linde India, an industrial gases and engineering firm, to halt a business valuation process ordered by the Securities and Exchange Board of India (Sebi). This decision came after Linde had appealed to the Securities Appellate Tribunal (SAT), which had previously upheld Sebi’s directive.
Sebi instructed the National Stock Exchange (NSE) to appoint a valuer to assess Linde India’s business in light of ongoing investigations into the company’s transactions with related parties, namely Praxair India and Line South Asia Services. The tribunal found no illegality in this action, emphasizing the need for confidentiality regarding sensitive pricing information during the valuation.
During the Supreme Court proceedings, Linde India raised concerns about the potential public disclosure of the valuation report, arguing it could expose price-sensitive information. However, the court decided to allow the valuation to proceed. Linde’s original request for an injunction on the Sebi order is set to be discussed again on October 15 at the tribunal.
This investigation was initiated after shareholders expressed concerns that Linde India had not obtained their prior approval for significant related party transactions. As the case unfolds, Sebi has indicated that it may impose penalties once the investigation is completed. Meanwhile, Linde India’s shares have seen a rise of over 5 percent, trading at Rs 8,602.
This ruling highlights the ongoing scrutiny of corporate governance practices in India and the importance of maintaining transparency in financial dealings.
Tags: Linde India, Supreme Court, Sebi, business valuation, NSE, corporate governance, industrial gases, related party transactions, stock Market news.
What does the Supreme Court’s decision mean for Linde India?
The Supreme Court decided not to change the earlier ruling from the Securities Appellate Tribunal, which means Linde India will not get the relief it wanted.
Why did Linde India seek relief from the Supreme Court?
Linde India was looking for help to overturn a decision made by the Securities and Exchange Board of India (SEBI) that affected the company’s operations.
What is the Securities Appellate Tribunal (SAT)?
The SAT is a special court that hears appeals related to securities and financial Market regulations in India.
What happens next for Linde India after this decision?
Linde India will have to follow the SAT’s order and cannot take any further legal action in this matter unless new grounds arise.
Is this decision typical for the Supreme Court?
Yes, it is common for the Supreme Court to uphold decisions made by lower courts or tribunals if they find no strong reason to change them.
