Vedanta shares drop nearly 8% as Sebi asks company to pay Rs 77.6 crore to Cairn

Vedanta share price: Anil Agarwal-led Vedanta shares on Wednesday, March 12, dipped in morning deals, a day after the Securities and Exchange Board of India (Sebi) ordered the mining major to pay Rs 77.62 crore to Scottish explorer Cairn for the delay in payment of dividends.

The Vedanta stock shed as much as 7.69 per cent to Rs 249.5 on the NSE. It was the fifth straight day of fall. The counter closed 7.14 per cent lower at Rs 251 on the NSE.

Sebi, in a 76-page order, said Vedanta must make the payment within 45 days or face further action. The market regulator also barred the firm's entire board, including his brother Navin and daughter Priya, from accessing the capital market.

What is Vedanta's take?

Vedanta, in an exchange filing post-market hours on March 12, said," We wish to inform you that the Securities and Exchange Board of India (“SEBI”) has issued an order dated March 12, 2024, in the matter of non-payment of dividend to Cairn UK Holdings Limited (now known as Capricorn UK Holdings Limited) by Cairn India Limited (now known as Vedanta Limited)."

The company is in the process of taking appropriate legal steps in respect of the same, the filing added.

What happened in the past?

Vedanta in 2011 bought Cairn Energy PLC's majority stake in its Indian arm, Cairn India Ltd. Cairn continued to hold a minority stake in Cairn India, which was subsequently merged into its parent and Mumbai-listed Vedanta Ltd.

In 2014, the Income Tax Department slapped a Rs 10,247 crore tax demand on the Scottish explorer over a 2006 reorganisation and listing of Cairn India. The tax department attached Cairn Energy's residual holding while Vedanta stopped paying dividends, citing the dispute.

The UK firm approached Sebi over stopping the dividend payment even as it contested the tax demand. Read more 

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