SEBI warns Vedanta over Rs 1,407 cr related-party transactions without approval
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Capital market regulator SEBI has warned billionaire Anil Agarwal's Vedanta Ltd for executing Rs 1,407 crore of related-party transactions without prior approval of the audit committee. In a warning letter, which Vedanta as per SEBI directions disclosed to stock exchanges, the regulator said it will take action if such actions were repeated in future.
The mining conglomerate's independent auditors had in the firm's annual report for fiscal year 2020-21 flagged related-party transactions.
Without disclosing the nature of the transaction, the company stated that the transaction was done at an arm's length and in ordinary course of business.
On the auditor's observation over delay in disclosure of the outcome of board meeting of October 3, 2020, the company submitted that the delay was due to unforeseen circumstances and that it will ensure that the same is not repeated.
SEBI asked Vedanta to place its letter before the company's board of directors and disseminate the same to stock exchanges.
Vedanta in the filing said that the firm's board at its meeting held on October 29 took note of the SEBI letter.
