did you too Have you invested in the stock of Linde India Company? Let us tell you that after receiving complaints from shareholders, capital market regulator SEBI has directed the National Stock Exchange (NSE) to nominate a valuer to evaluate the transaction between Linde India and its affiliate Praxair India. The case relates to the transactions and agreements between Linde India Limited (LIL) and its associated companies Praxair India Private Limited (PIPL) and Linde South Asia Services Private Limited (LSASPL).
Received many complaints from shareholders
The Securities and Exchange Board of India (SEBI) had investigated the matter after receiving several complaints from shareholders. It was alleged that the transactions and agreements entered into by Linde India with Praxair India were in the nature of material related party transactions (RPTs) and Linde India had not obtained shareholders’ approval on these transactions. Sebi, in its interim order passed on Monday, said Linde India was carrying out “related party transactions which prima facie appear to be material” without the approval of shareholders.
possibility of unfair advantage
This has the potential to unfairly benefit controlling shareholders at the expense of the broader shareholder base. The market regulator ordered NSE to appoint a registered valuer to evaluate the business in addition to the geographical allocation in terms of the joint venture and shareholder agreement between Linde India and Praxair India. Along with this, the regulator directed NSE to provide the valuation report to both SEBI and the company. Within two weeks of receiving the report, Linde is required to present it to the audit committee and the board of directors.
Earlier the name of the company was BOC India.
SEBI said Linde India should assess the materiality of future related party transactions based on the total value of transactions with any related party in a financial year, irrespective of the number of transactions or contracts. Linde India was previously known as BOC India and was part of the UK-based BOC Group. In 2006, it was acquired by German company Linde AG. LIL is engaged in the manufacturing and sale of industrial, medical and specialty gases, instruments and related products.
Latest Business News