SEBI puts ₹30 lakh penalty on Vedanta for breaching disclosure norms

Capital market regulator SEBI has fined Anil Agarwal-owned Vedanta 30 lakh for breaching disclosure standards.

Back in February, a news agency ran a story saying “Vedanta Partners with Foxconn to Make Semiconductors in India”. When the exchanges asked for clarification, the company said “..the proposed semiconductor manufacturing business is not under Vedanta’s jurisdiction and we understand it will be undertaken by Vedanta’s Vulcan Investments Holding Company.”

In contrast, last September the company issued a press release stating that “Vedanta signs memorandums of understanding with the Government of Gujarat for the establishment of semiconductors and offering of turnkey units.”

When asked for an explanation from NSE, the company said the press release was inadvertently issued on Vedanta paper bearing Vedanta’s name and was immediately replaced.

SEBI then sanctioned the company for making false representations through a press release on its letterhead regarding a material event, which was not related to the listed entity and for publishing the press release on its website.