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Asian Paints shares trade in the red as promoters again come under fire for related party transactions

Asian Paints shares were trading in the red on Thursday after the paint maker once again made headlines for related party transactions.

As of 9:16 am, shares of Asian Paints were trading down 0.2% at Rs 3,154 on BSE.

A media report said that the Dani family, promoters of Asian Paints, have been criticized by proxy consulting firm Ingovern. The company reported several related party transactions between Asian Paints and Paladin Paints & Chemicals, a private company owned by the Danis.

Ingovern reportedly highlighted the likely conflict of interest involving Danis-controlled entities, which also supply raw materials to the paint manufacturer.

Another report says Ingovern has called for the removal of Asian Paints promoters Ashwin Dani and his son Malav Dani from the board amid allegations of related party transactions.

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This development comes after reports claimed a month ago that a whistleblower wrote to SEBI alleging the Danis got rich at the expense of Asian Paints shareholders.

The whistleblower informed SEBI that the money to buy a company called Paladin Paints & Chemicals came from Asian Paints, but its promoters Ashwin Dani and son Malav now control it in a personal capacity.

In response to this, the paint manufacturer then clarified that “the said complaint had been investigated in accordance with the company’s whistleblower policy, and after conducting a detailed review of the transactions mentioned therein, the said complaint was closed at the end of the investigation. that the transactions were carried out in accordance with the law and that the allegations made were unfounded ”.

First publication: STI


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