Vedanta 's proposed demerger has encountered another setback as the National Company Law Tribunal (NCLT) bench overseeing the case has been reconstituted. This development will lead to a fresh hearing of Vedanta's plea and the government's objections, with proceedings set to resume on November 12.

SEBI's Stance on the Demerger

The Securities and Exchange Board of India (SEBI) has played a significant role in the demerger process:

• Initially issued a warning letter regarding the demerger
• Subsequently approved the revised scheme
• Expressed displeasure with Vedanta's post-approval modifications to the merger scheme

Market Reaction

Vedanta's share price experienced volatility in response to these developments:

The stock recently traded above ₹500, indicating investor interest despite the ongoing demerger complications.

What's Next

The reconstitution of the NCLT bench means that:

1. Vedanta's demerger plea will be reheard from the beginning
2. Government objections will also be presented anew
3. The process may face further delays

This development adds another layer of uncertainty to Vedanta's demerger plans, which have already faced multiple hurdles. Stakeholders will be closely watching the proceedings on November 12 for any indications of how the demerger might progress.

Promoter Group Loan Repayment

In a separate development, Vedanta has received notice from its promoter group regarding the signing of a Global Release Deed following complete loan repayment. The promoter group has fully paid off their loans, resulting in the lifting of all claims on Vedanta shares. This significant move removes any encumbrances that were previously placed on the company's shares as security for the promoter loans.

As the situation unfolds, it will be crucial to monitor any further regulatory interventions, market reactions, and potential impacts on Vedanta's strategic plans. The outcome of these processes could have significant implications for the company's structure, operations, and financial stability going forward.

In a significant development for Vedanta 's corporate restructuring process, the Securities and Exchange Board of India (SEBI) has approved the documentation for the company's proposed demerger plan. This regulatory green light marks a crucial step forward in Vedanta's ongoing corporate reorganization efforts.

Key Developments

• SEBI Approval: The market regulator has recorded the documentation related to Vedanta's demerger case.
• Next Steps: SEBI plans to submit its application in the ongoing hearing at the National Company Law Tribunal (NCLT).
• Significance: This regulatory approval represents a key milestone in Vedanta's corporate restructuring process.

Implications for Vedanta

The SEBI approval of Vedanta's demerger documentation is a critical development in the company's restructuring journey. This step potentially paves the way for the company to proceed with its planned corporate reorganization, subject to further approvals and legal processes.

What's Next

The focus now shifts to the NCLT, where SEBI is expected to submit its application as part of the ongoing hearing. The NCLT's decision will be crucial in determining the future course of Vedanta's demerger plans.

Investors and market watchers will likely keep a close eye on further developments in this case, as the outcome could have significant implications for Vedanta's corporate structure and, potentially, its market valuation.

As the situation evolves, more details about the specifics of the demerger plan and its potential impact on shareholders may come to light. Stakeholders are advised to stay informed about further updates from the company and regulatory bodies.