Vedanta's Demerger Faces Centre's Objection, Market Watchdog SEBI Issues Warning

Vedanta's demerger is facing objection from the central government, on Wednesday, after the company received a warning from the market's regulator for non-compliance, citing Reuters report. 

The shares of the Anil Aggarwal led company fell 2.4 per cent to hit session's low after the report.

The mining company Vedanta aims for a sweeping overhaul to carve itself up into multiple separate businesses, in a move aimed at shoring up the group's financial performance.

India's National Company Law Tribunal has deferred Vedanta's demerger case hearing to September 17 after the federal government objected to the split, claiming it has "serious objections," as per media reports. 

Also Read: Paytm Hits Fresh 52-Week High After Motilal Oswal MF Raises Stake

The central government has flagged concealment and non-disclosure of key details for the demerger as well as "inflated revenues" and "concealed liabilities," it added.

Meanwhile, market watchdog Securities and Exchange Board of India (SEBI) confirmed that Vedanta made modifications to the scheme post-NOC, which the regulator dubbed as a "serious breach" of the applicable master circular.

SEBI also 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.