Vedanta shares drop up to 2.65% intraday; latest developments investors need to know

The stock was trading lower amid news reports that the Enforcement Directorate (ED) has launched an investigation into alleged foreign exchange violations involving the global mining conglomerate and carried out searches at its premises.

The investigation is being conducted under the civil provisions of the Foreign Exchange Management Act (FEMA), they said.

A Vedanta spokesperson confirmed the ED action and said the company was "extending full cooperation to the authorities and is providing all information sought."

"The company remains committed to compliance with all applicable laws and regulations. As the matter is currently under regulatory process, we are unable to comment further at this stage," the spokesperson said.

What is the FEMA Act in India?

The Foreign Exchange Management Act (FEMA), 1999, is the primary Indian law that regulates all cross-border transactions, foreign investments, and currency flows.

Its core objective is to facilitate external trade and payments while promoting the orderly development of the foreign exchange market in India.

About Vedanta Ltd

Vedanta Ltd is a leading global producer of metals, critical minerals, and technology. The company has operations across India, Africa, the Middle East, and East Asia.

Vedanta demerger details

Vedanta shares have been trading ex-demerger since April 30, 2026, following a special trading session conducted to discover the price of the residual listed entity after the proposed spin-off.

Under the demerger scheme, Vedanta’s businesses are being split into five independent companies (including the existing one), and the parent stock now represents only the residual business value.

According to the exchange filing, under the composite scheme of arrangement, shareholders of Vedanta received equity shares in four businesses in a 1:1 ratio.

Post demerger, the Vedanta group will comprise five standalone entities, each focused on a specific business vertical: Vedanta (Residual Entity), Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, and Vedanta Iron and Steel.