Vedanta's Demerger Saga: NCLT Hearing Deferred Amid Regulatory Scrutiny

The NCLT has postponed Vedanta Ltd's demerger hearing to September 17 due to ongoing scrutiny by Sebi and objections from the central government. The Ministry of Petroleum and Natural Gas raised concerns, and Sebi issued an administrative warning. Vedanta's plan to demerge into four companies by 2025 is under review.

The National Company Law Tribunal (NCLT) deferred the hearing regarding Vedanta Ltd's proposed demerger until September 17. The delay comes as the Securities and Exchange Board of India (Sebi) continues to scrutinize the proposal, while the central government has raised several objections.

The hearing, initially set for August 20, follows objections from the Ministry of Petroleum and Natural Gas, which expressed its concerns before the NCLT Mumbai bench on July 2. Meanwhile, Sebi has stated that it has no further comments on the demerger scheme and is verifying Vedanta's compliance with regulatory norms. The National Stock Exchange (NSE) has issued a no-objection certificate, but the Ministry of Petroleum seeks additional time to review the scheme.

Vedanta has responded to the Ministry's representation and acknowledged an administrative warning from Sebi regarding a procedural lapse. Although Sebi's letter doesn't impose financial restrictions, Vedanta is taking corrective actions. Furthermore, the company addressed a Supreme Court judgment related to an unrelated contractual matter with Talwandi Sabo Power Limited, clarifying its lack of impact on the demerger process.

(With inputs from agencies.)