Vedanta shares closed in the red and snapped five consecutive sessions of gains on September 17 after NCLT Mumbai deferred hearing of the demerger case to October 8.
CNBC-TV18 reported on September 7 that government has flagged insufficient disclosure of liabilities and violation of market regulator's disclosure norms. Government flagged financial risk post demerger and misrepresentation of hydrocarbon assets, the channel reported.
The demerger first got an objection from Centre and a 'warning' from SEBI last month.
On September 17, Vedanta shares on NSE closed 1.3% lower at Rs 455.55 apiece.
"Government (ministry of petroleum and natural gas) is not opposing the demerger scheme, they are worried about claims on RJ Block and cover reduction on demerger," Vedanta lawyers told in NCLT, reported CNBC-Awaaz.
"Oil Ministry’s application has now been reserved for judgment, next hearing on October 8," a Vedanta spokesperson told CNBC-TV18.
The oils-to-metals conglomerate had said in December that it would split into four new listed entities while remaining listed as a main company, scrapping an earlier plan to break up into six separate businesses.
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