By Shishir Prashant 
PrashantNews
Despite Vedanta’s clarification that no penalty or restriction has been imposed after the searches by the Directorate of Enforcement (ED), the shares of the company continued to fall on Friday closing at 315.50 down -3.65% on the BSE.
Vedanta clarified that the search was part of an ongoing investigation and that no penalty, restriction or sanction has been imposed on the company in connection with the proceedings. The searches were conducted at the company’s premises as part of an investigation under the Foreign Exchange Management Act (FEMA), 1999, it said.
In a regulatory filing submitted to the Bombay Stock Exchange (BSE), the company said the search operation commenced on June 1 at 12:15 pm and concluded on June 3 at 9:55 pm.
“The officers of the company provided all necessary information, documents and clarification as sought by the Enforcement Directorate,” the company stated in a regulatory filing on the BSE.
It also said no violations or contraventions have been identified or communicated beyond the search operation conducted under FEMA provisions.
Vedanta further assured investors that the development has not affected its business operations. “There is no impact on financial, operational or other activities of the company,” it said.
The disclosure was made in compliance with market regulations requiring listed entities to inform stock exchanges about significant actions initiated by regulatory or enforcement authorities.
The ED is India’s official agency tasked with investigating offences related to money laundering and violations of foreign exchange laws. Searches under FEMA are typically conducted to examine transactions involving foreign exchange, overseas investments, cross-border fund flows and related compliance matters.
Shares of Vedanta remained in focus following the disclosure, with investors closely monitoring any further developments in the matter.