It flagged concerns over inflated revenues and concealed liabilities, suggesting that Vedanta altered its demerger scheme after receiving a No Objection Certificate (NOC) from the Securities and Exchange Board of India (SEBI) and stock exchanges.
SEBI confirmed that Vedanta made modifications to the scheme post-NOC, which the regulator termed a “serious breach” of the applicable master circular.The market watchdog said that it has issued an administrative warning to the company, adding that such modifications should have been brought to the attention of the company’s board.
In light of the issues raised, the NCLT has postponed the hearing to September 17.Vedanta first announced its demerger plan in September 2023, aiming to split into four independent listed entities focused on aluminium, oil and gas, power, and base metals. The company said that the restructuring is intended to improve operational efficiency, streamline management, and unlock shareholder value.
The deadline for completing the demerger was extended in March 2025 to September 30, due to pending approvals from the NCLT and other regulatory authorities.
Vedanta maintains that the proposed separation will lead to faster, more focused decision-making and align better with India’s economic growth and energy transition goals.
Separately, the company has scheduled a board meeting on August 21 to consider and approve a second interim dividend for FY 2025-26. The record date for this dividend has been fixed as August 27.
At present, Vedanta’s stock is down 2.29% on the day and 1% lower on a year-to-date basis.
