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Metals-to-oil conglomerate Vedanta Ltd has been penalized by the Securities and Exchange Board of India (SEBI) for breaching disclosure requirements. SEBI has imposed a fine of 30 lakhs on Vedanta after finding the company guilty of violating market regulations. As per the news reports Vedanta has cooperated with Foxconn to produce semiconductors in India, on February 14, 2022.
According to SEBI, on Sept. 13, 2022, Vedanta issued a press release that said, "Vedanta signs MoUs with the Government of Gujarat to set up semiconductor and display fab units", to make its entry into the semiconductor business. When questioned by the exchanges regarding the press release issued in September, Vedanta claimed that it was inadvertently made on its letterhead and was promptly replaced.
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Sebi said in the order, “The Noticee (Vedanta) has been treating the listed company website as the billboard for the promoter company…it appears that the noticee, being a listed company, is a repeat offender, with total disregard to the investors’ interest,”.However, SEBI determined that the corrective actions taken by the company were inadequate and significantly delayed.
As a result, Vedanta has been found to have violated disclosure regulations. "The act of the noticee, which is a listed company to carry the news not pertaining to its operations on the website leads to providing misleading information to the investors of the public limited company,” the regulator said.
Following the SEBI penalty, Vedanta's shares on the National Stock Exchange ended nearly 1% lower at Rs 277.95 on Friday.
— Harshita Kumar
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