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Vedanta Share Price Fall 3% as Demerger Plan Faces Fresh SEBI, NCLT Hurdles

Written by: Kusum KumariUpdated on: 20 Aug 2025, 8:47 pm IST
Vedanta share price fell 3% as NCLT deferred its demerger hearing and SEBI flagged a “serious breach,” while subsidiaries faced legal and tax setbacks.
Vedanta Share Price Fall 3% as Demerger Plan Faces Fresh SEBI, NCLT Hurdles
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Vedanta share price (NSE: VEDL) dropped nearly 3% on August 20, 2025, hitting a low of ₹437.60 on the BSE compared to the previous close of ₹450.10. Around 1:51 PM, the stock was trading 1.72% lower at ₹442.35.

Demerger Setback

The decline came after the National Company Law Tribunal (NCLT) postponed the hearing on Vedanta’s demerger proposal to September 17. The Centre raised objections, alleging that the company concealed key information, inflated revenues, and hid liabilities.

SEBI Flags “Serious Breach”

According to reports, the Securities and Exchange Board of India (SEBI) confirmed that Vedanta modified its demerger scheme after receiving a No-Objection Certificate (NOC) from regulators. SEBI termed this a “serious breach” of rules under the master circular.

Legal and Regulatory Issues

Adding to the challenges, Vedanta’s subsidiary Talwandi Sabo Power Ltd (TSPL) lost a long-standing case in the Supreme Court regarding benefits under the Foreign Trade Policy (FTP). The court upheld an earlier tribunal ruling against TSPL. Vedanta said it is reviewing the decision for possible next steps.

Tax Penalty on Subsidiary

Vedanta also disclosed that its subsidiary Bharat Aluminium Company Ltd (BALCO) has received a penalty order of ₹80.96 lakh from the Income Tax Department for AY 2012–13. The penalty was issued under Section 271(1)(c) of the Income Tax Act following an earlier assessment.

Also Read: HAL Share Price in Focus: Government Approves ₹62,000 Crore Deal!

Conclusion

Vedanta’s stock is under pressure as its demerger plan faces delays, regulatory objections, and fresh legal setbacks. With SEBI flagging a serious breach and subsidiaries facing penalties, the company’s restructuring journey looks increasingly challenging.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Aug 20, 2025, 3:17 PM IST

Kusum Kumari

Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.

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