The Securities and Exchange Board of India (Sebi) has imposed a fine of Rs 30,00,000 on Vedanta Ltd for violating listing and disclosure norms. Vedanta will have to pay within 45 days of receiving the order, the regulator said.
Sebi fines mining major for misrepresentations related to plans to enter the semiconductor business.
On February 14, 2022, news began circulating that Vedanta had partnered with Foxconn to manufacture semiconductors in India.
Following this, the stock exchange sought an explanation from Vedanta, to which the company replied that the said business would be managed by the holding company Vulcan Investments Limited.
However, a press release issued by the company later said “Vedanta signs MoU with Gujarat government to set up semiconductor and display fab unit.”
When asked by the exchange, the company came up with a statement that the press release was inadvertently made on its letterhead and it was replaced immediately.
Based on this, the regulator alleged that Vedanta violated the provisions of the Disclosure Regulations by making false representations through a press release on its letterhead.
“The notice (Vedanta) is treating the website of the listed company as a billboard of the promoter company… It appears that the notice, being a listed company, is a repeat offender with complete disregard for the interests of the investors,” the Sebi order said.
