 "Linde India")
During the arguments, the apex court noted that the tribunal had already addressed the confidentiality aspect | Photo: X@LindeIndia1
The Supreme Court on Monday denied relief to Linde India, an industrial gases and engineering firm, in its plea against a valuation exercise being carried out as per a directive by the Securities and Exchange Board of India (Sebi). The company had earlier filed plea in the Securities Appellate Tribunal (SAT), however, the tribunal had upheld the Sebi’s decision
Linde had filed a plea to SC challenging the SAT order.
In April, Sebi had directed the National Stock Exchange (NSE) to appoint a valuer to carry out the valuation of the company’s business. The market regulator’s directions came during a probe into agreements and transactions by Linde India with its related parties, Praxair India and Linde South Asia Services.
In its order last week, the tribunal noted that there was no illegality in NSE appointing a valuer in pursuance of Sebi’s order. It further instructed NSE and Sebi to maintain confidentiality regarding price-sensitive information revealed during the valuation exercise.
The apex court refused to interfere with the tribunal’s order and stated that the valuation exercise could proceed.
In its plea to the Supreme Court, Linde India raised concerns about Sebi’s initial order, which directed the company to publish the valuation report on exchanges—a public platform—arguing that this could risk exposing price-sensitive information.
During the arguments, the apex court noted that the tribunal had already addressed the confidentiality aspect.
Linde India’s original plea seeking a stay on Sebi’s entire order is scheduled to be heard by the tribunal on October 15. The company had filed a miscellaneous plea with SAT seeking immediate relief on the valuation exercise.
Sebi’s probe followed complaints by shareholders that the company did not seek their approval before executing material related-party transactions.
In its order, Sebi noted that it may consider punitive measures once the ongoing investigation reaches its conclusion.
Shares of Linde were last trading over 5 per cent higher at Rs 8,602.
First Published: Sep 23 2024 | 2:44 PM IST
