Key facts
- Vedanta shares fell over 1% amid reports of Enforcement Directorate searches.
- The probe reportedly concerns alleged violations of the Foreign Exchange Management Act (FEMA).
- The investigation relates to royalty payments made to Vedanta's parent company.
- Vedanta confirmed Enforcement Directorate visits to its offices and Hindustan Zinc.
- Vedanta stated it is cooperating with authorities and providing information.
Vedanta shares fell over 1% following reports that India's Enforcement Directorate (ED) conducted searches concerning alleged violations of the Foreign Exchange Management Act (FEMA). The probe reportedly relates to royalty payments to Vedanta's parent company. Vedanta confirmed that the ED visited its offices and those of Hindustan Zinc as part of the FEMA probe, stating the company is fully cooperating with the authorities. A Vedanta spokesperson reiterated the company's commitment to compliance and stated it is providing all requested information. The ED's investigation into Vedanta Group concerns alleged violations of FEMA, specifically regarding brand fee payments. Such probes can lead to significant financial penalties and reputational damage for the involved entities. The recent share price dip adds to scrutiny amid a corporate restructuring, although the company has also received recent rating upgrades.