Sebi is probing Linde India for related party transaction violation

The stock market regulator, the Securities and Exchange Board of India (Sebi), is currently investigating Linde India for potential breaches related to transactions involving related parties. The inquiry was prompted by shareholder complaints alleging that the company proceeded with significant related-party transactions without seeking their approval or providing adequate valuation information to the Board.

Sebi has initiated punitive actions and summoned key personnel and Independent Directors for investigation. Despite Linde and its Directors challenging Sebi’s actions in the Bombay High Court, no stay has been granted.

The investigation focuses on agreements and transactions between Linde India and its related parties, Praxair India, and Line South Asia Services. Sebi has instructed Linde India to obtain shareholder approval for related party transactions exceeding materiality thresholds and requested the National Stock Exchange to appoint a registered valuer to assess the business’s value. Once the valuation report is available, Linde India must disclose its findings.