Fri Sep 20 13:32:41 UTC 2024: ## Linde India Loses Appeal Against Valuation in Related Party Transaction Case

**Mumbai, India:** The Securities Appellate Tribunal (SAT) has dismissed Linde India’s appeal against the valuation exercise conducted by a valuer appointed by the National Stock Exchange (NSE) in a related party transaction case. The tribunal ruled that the valuation process is necessary for the Securities and Exchange Board of India (Sebi) to investigate whether Linde India required shareholder approval for its transactions with related parties.

The case stems from Sebi’s April 29th order finding that Linde India engaged in significant related party transactions without obtaining prior shareholder consent. The company had failed to provide a valuation to its board before allocating future business to related entities, leading to complaints from shareholders and an investigation by Sebi.

Linde India argued that the valuation was unnecessary and potentially harmful, as it would require sharing sensitive information with a third party. The company also expressed concerns about the potential for leaks of unpublished price-sensitive information (UPSI), which could negatively affect investor confidence and the securities market.

However, Sebi maintained that the valuation is a crucial part of its investigation and would not prejudice the company. The SAT agreed, finding no illegality in NSE’s appointment of the valuer and declining to stay the valuation process.

The tribunal has directed Sebi to issue an order clarifying that both the NSE and its appointed valuer are bound by UPSI confidentiality rules. The valuation report will be shared with Sebi, Linde India, its board, and audit committee, and the company will be required to present it to stock exchanges along with management’s comments.

The final hearing for the matter is scheduled for October 15th.

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