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SEBI imposes Rs 90 lakh penalty on Vedanta for violating disclosure norms
The Securities and Exchange Board of India imposed a penalty of Rs 30 lakh on Vedanta Ltd. for violating listing and disclosure norms.
Vedanta made misrepresentations about its entry into the semiconductor business, which in turn had a significant impact on its share prices, the regulator said on Friday. This is in violation of the listing and disclosure norms mandated by SEBI.
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”, signalling its entry into the semiconductor business.
This was picked up by major newspapers and wire services, including Reuters and the Business Standard. However, upon NSE seeking clarifications on this, the company claimed it to be inadvertent and replaced it immediately.
In its intimation to the stock exchanges, it clarified that the proposed business would not be undertaken by Vedanta but by its ultimate holding company, Volcan Investments Ltd. Thus, by making false representations through its letterhead regarding a material event unrelated to the company, Vedanta violated several provisions of the Disclosure Regulations.
The violation cannot be dismissed as a technical error as Vedanta has been aware of the deal since February, and a similar clarification was sought by the exchanges at that time as well, it said. Bloomberg
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