Please refer the enclosed file.
Awaiting price reaction for this filing.
Hindustan Zinc Limited (HZL), a subsidiary of Vedanta, received a fine of Rs. 5,31,000 each (including GST) from BSE and NSE on May 29, 2025. The penalty is for non-compliance with Regulation 17(1) of the SEBI Listing Regulations, specifically due to a shortfall of Independent Directors on its Board. HZL stated that the compliance issue is pending and the company is actively following up with the Ministry of Mines, Government of India, to rectify the composition. The company has classified the financial and operational impact of this fine as 'Not Significant.'
The financial impact is minimal (a few lakhs in fines), but it flags an unresolved governance issue at the subsidiary level — HZL needs to induct more independent directors. No material effect expected on Vedanta's stock price, though investors may want to track the resolution.