No room for word games in related norms: Sebi to Linde

The Securities and Exchange Board of India (Sebi) has taken a firm stance before the Securities Appellate Tribunal (SAT) in its ongoing dispute with multinational industrial gases firm Linde India, providing a comprehensive interpretation of the term 'related party transaction' (RPT) under the Sebi Listing Obligations and Disclosure Requirements (LODR) Regulations.

- SAMIE MODAK

In its submission, Sebi has asserted there is no legal distinction between "related party transaction" and "transaction with a related party" under the LODR framework.

According to Sebi, both expressions are "used interchangeably" and should be treated as synonymous for the purposes of compliance and enforcement.

Sebi's views assume significance as the long-drawn battle over Linde India's RPTs, and their valuation exercise draws to a possible close with the SAT reserving the order in the matter.

Both Sebi and public shareholders have accused Linde India of indulging into word play to classify transactions with its arm Praxair India as "non-material" to escape shareholder scrutiny.