Vedanta shares in focus today as Sebi issues administrative warning to mining conglomerate

Shares of Vedanta Ltd are in focus today as markets regulator Sebi has warned the mining conglomerate Vedanta to strengthen its internal control for corporate announcements and press releases. 

Vedanta shares ended 0.11% higher at Rs 282.75 on Thursday (March 7). In the last one month, the Vedanta stock has gained 0.27%. Market cap of the firm rose to Rs 1.05 lakh crore. Vedanta shares have a one-year beta of 0.5, indicating very low volatility during the period.      

In a communication to bourses, Vedanta said it has received a letter from NSE, annexing a letter issued by Sebi in which an administrative warning has been issued to Vedanta.

"The company has been directed to place the said letter before its Board of Directors and take necessary corrective steps to strengthen the internal control for corporate announcement / press releases," Vedanta said.

Sebi found violation of Sections 12A (a), (b), (c) of SEBI Act, 1992 r/w Regulations 3 (b), (c),(d), 4(1) & 4(2) (k) & (r) of SEBI (PFUTP) Regulations, 2013 in respect of Vedanta publishing information related to its unlisted ultimate holding company.

The Anil Agarwal-led metal and mining firm said the warning will not have any impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms.

In terms of technicals, the relative strength index (RSI) of Vedanta stands at 61.7, signaling the stock is trading neither in the oversold nor in the overbought territory. Vedanta shares stand higher than the 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.    

Vedanta shares fell to a 52-week low of Rs 207.85 on September 28, 2023 and rose to a 52-week high of Rs 301 on May 29, 2023.

Vedanta shares have fallen 1.48% in a year.    

Vedanta Ltd is a subsidiary of Vedanta Resources Ltd and has operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, and aluminium and power across India, South Africa and Namibia.