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

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.

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