Vedanta – October Regulatory Update

Author: Viceroy Research Published on: October 23, 2025 Published in: Vedanta (NSE:VEDL)

October 23, 2025 – Public disclosures by Hindustan Zinc, VRL and other entities, including the Supreme Court, show gaps between Vedanta’s “all is well” narrative and the underlying reality. Active investigations, ministry objections and legal challenges continue to unfold.

VRL’s and HZL’s disclosures confirm active investigations from SEBI and another regulator, understood to be the Enforcement Directorate.

In its September 30, 2025 Bond Prospectus, Vedanta Resources Limited (VRL) was forced to disclose that the Group had been subject to “Summons” from SEBI based on Viceroy’s research. VRL implied that the investigation had been concluded because “no further communication [had] been received thereafter”.

However, the disclosure required by the auditors of HZL’s Q2 FY26 accounts shows this to be untrue. It reveals that more than one regulator (understood to be the ED in addition to SEBI) were continuing their investigations into October: “subsequent to the quarter”.

This leaves no window for the Group to honestly conclude that the SEBI or ED investigations are not ongoing. Shareholders should brace themselves for regulatory intervention. We note that the Company did not inform the market of a previous ED meeting that resulted in a brand fee refund.

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