US based Short-seller Viceroy has accused Vedanta Limited promoters of hidden stake via welfare trust and many other financial irregularities.
According to reports from July 2025, Viceroy Research has accused Vedanta Resources’ promoters of holding a hidden stake in the company through a welfare trust.
Allegations:
Viceroy claims that the promoters, led by Anil Agarwal, control a 1.91% stake in Vedanta Ltd. through Bhadram Janhit Shalika Trust (BJST) and its subsidiary PTC Cables Pvt. Ltd (PTCC).
It’s alleged that PTCC received significant dividend income from Vedanta and recycled these funds back to promoter-linked entities, creating an illusion of independence.
Viceroy also alleges that Vedanta Semiconductor Pvt Ltd (VSPL) is a “sham” operation designed to improperly avoid classification as a Non-Banking Financial Company (NBFC) and facilitate fund transfers to the parent company.
They claim loans between VSPL and Vedanta Ltd were not compliant with regulations.
Vedanta’s Response:
Vedanta has denied all allegations, asserting that BJST and PTCC are not part of the promoter group and their shareholding has been transparently disclosed in public filings.
The company maintains that all business activities of VSPL have been transparently disclosed and are in line with statutory norms.
Vedanta states that loans between VSPL and Vedanta Ltd were executed in full compliance with applicable laws and corporate governance standards.
Vedanta dismisses Viceroy’s claims as unfounded and a “malicious combination of selective misinformation and baseless allegations”.
Viceroy’s Track Record:
Former Chief Justice of India, D.Y. Chandrachud, has criticized Viceroy Research’s reports, highlighting their history of taking short positions and publishing misleading reports to profit unlawfully.
Chandrachud noted past instances of penalties imposed on Viceroy for artificially distorting share prices and disseminating false reports.
Regulatory Landscape:
Indian regulations, particularly the Securities and Exchange Board of India (SEBI), mandate a minimum public shareholding of 25% for listed companies, with promoters required to disclose their holdings transparently.
SEBI also has regulations regarding promoter contributions in IPOs, aiming to ensure promoter commitment and transparency.
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