 "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 a plea in the Securities Appellate Tribunal (SAT), however, the tribunal had upheld the Sebi’s decision. Linde had then approached the apex court for relief.
Sebi had directed National Stock Exchange (NSE) to appoint a valuer to carry out the valuation of the business by the company. The market regulator’s directions came in a probe pertaining to agreements and transactions by Linde India with its related parties Praxair India and Line South Asia Services.
In its order last week, the tribunal noted that there was no illegality in NSE appointing a valuer in pursuance of the Sebi order and had further asked NSE and Sebi to maintain confidentiality with respect to price-sensitive information revealed during the valuation exercise.
The apex court refused to intervene in the matter and said that the valuation exercise can be carried.
In the plea to SC, Linde India cited issues with the initial order by Sebi where it had directed the company to publish the valuation report on the exchanges — in public platform– which the company said could risk revelation of price-sensitive information.
The apex court during the arguments noted that the tribunal had addressed the confidentiality aspect.
The original plea by Linde India seeking stay on the whole order by Sebi is scheduled to be heard in the tribunal on October 15. The company had moved SAT with a miscellaneous plea seeking immediate relief on the valuation exercise.
The market regulator’s probe followed complaints by shareholders that the company did not seek their approval before executing material related party transactions.
Sebi in its order had 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
