Vedanta Demerger Hits Roadblock: NCLT Defers Hearing Amid SEBI Review, Pushes Hearing to September 17

The National Company Law Tribunal (NCLT) has postponed the next hearing on Vedanta Limited's proposed corporate demerger to September 17, 2025, citing ongoing regulatory review and unresolved objections from the central government. The matter, previously adjourned and part-heard, had been scheduled for a follow-up hearing on August 20, 2025, but has now been further deferred.

Vedanta Demerger Hearing Postponed to September 17, 2025; Know Reasons

One of the key reasons for this delay is that the Securities and Exchange Board of India (SEBI) is still in the process of verifying Vedanta's compliance with the applicable regulatory framework, even though the market regulator informed the tribunal that it has no additional comments on the proposed demerger scheme. SEBI is currently completing its final scrutiny of the compliance documents submitted by the company.

NSE Issues No Objection Certificate for Vedanta Demerger Scheme

In addition, the National Stock Exchange (NSE), through its legal representative, confirmed that it has issued a No Objection Certificate (NOC) for the demerger, indicating that from the stock exchange's standpoint, the proposal meets listing and disclosure requirements.

However, the demerger has faced objections from the Ministry of Petroleum and Natural Gas, which has raised concerns regarding aspects of the restructuring, particularly those related to Vedanta's oil and gas business. A legal counsel representing the ministry appeared before the NCLT's Mumbai bench and requested additional time to present the ministry's observations in detail during the next hearing. This objection was initially raised on July 2, 2025.

Vedanta Demerger Plan Timeline Four Independent Listed Entities

Vedanta first unveiled its ambitious demerger plan in September 2023, outlining its intention to split its diverse operations into four independent, publicly listed entities. The aim is to create focused business units centered around aluminium, oil and gas, power, and base metals, with the goal of improving operational efficiency, enhancing strategic focus within each vertical, and ultimately unlocking greater shareholder value.

While the original deadline for the demerger was earlier set for March 2025, the company sought and received an extension until September 30, 2025, due to delays in obtaining necessary approvals from the NCLT and other statutory bodies.