Linde India Plans EGM Amid Sebi RPT Compliance Push

Linde India EGM is set for March 5 as the company seeks shareholder approval for material related-party transactions (RPTs) with Praxair India for FY2025-26. The relocation follows one of the most important regulatory changes and is a sign that the company is sincere with market regulations.

The exceptional general meeting comes after a decision by the Securities Appellate Tribunal (SAT), in December 2025, to allow the interpretation of the materiality level of RPTs by the Securities and Exchange Board of India. The case focused on Linde India and joint venture business with Praxair India.

Linde India had already appealed against the findings of Sebi claiming that the regulator had wrongly employed the concept of related-party transactions. Nevertheless, the tribunal did not accept the claims of the company and said that the materiality limits are well stipulated in the current regulations.

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According to the Sebi standards, any transaction that is above 1,000 crore or 10 percent of annual consolidated turnover of any entity whichever is lesser must be approved by all the shareholders beforehand. The company will request RPTs of 417.7 crore with Praxair India at the upcoming Linde India EGM to run to FY2025-26.

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“This shows that the company has accepted the market regulator’s interpretation of RPTs under the Listing Obligations and Disclosure Requirements (LODR), which is positive from a corporate governance standpoint,” said a regulatory expert.

Corporate governance experts consider the development to be an obvious step towards compliance and higher levels of transparency.