NSE/BSE Codes: NSE: VISL, BSE: 544784

Summary of Key Information:

Nature of Event / Disclosure:

Regulatory disclosure under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015 regarding an adjudication order received by ESL Steel Limited, a subsidiary of Vedanta Iron And Steel Limited.

Involved Parties / Authorities:

  • ESL Steel Limited (Subsidiary)
  • Vedanta Iron And Steel Limited (Parent Company)
  • Adjudicating Authority under Companies Act, 2013
  • Securities and Exchange Board of India (SEBI)
  • BSE Limited
  • National Stock Exchange of India Limited

Date / Timeline of Event:

  • Previous Intimation Date: July 30, 2026 (Reference: VISL/SEC./SE/2026-27/19)
  • Adjudication Order Date: August 27, 2026 (Reference: PO/ADJ/08-2026/RN/02789)
  • Order Receipt Date: September 30, 2026 at approximately 10:01 PM IST
  • Disclosure Date: October 01, 2026
  • Financial Years Involved: 2015-16 to 2017-18

Brief Description of Outcome / Dispute:

ESL Steel Limited received an adjudication order under Section 454 of the Companies Act, 2013 for alleged violation of Section 197(15) read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. The matter pertained to the erstwhile management and involved alleged non-disclosure of the ratio of directors' remuneration to median employee remuneration and other prescribed disclosures in the Board's Report/Corporate Governance Report.

Impact of Outcome:

Financial Impact:

ESL Steel Limited has been exempted from penalty in terms of Section 32A of the Insolvency and Bankruptcy Code, 2016. No financial penalty has been imposed on the company.

Operational / Business / Strategic Impact:

The adjudication proceedings have been concluded with this order. The matter relates to historical periods (FY2015-16 to FY2017-18) under previous management, indicating no ongoing operational impact on current business operations.

Other Implications:

The resolution of this historical compliance matter brings closure to regulatory proceedings that originated from the erstwhile management period.

Next Steps / Required Actions:

The adjudication order concludes the proceedings. Ex-director and Ex-KMPs have accepted the penalty as mentioned in the notices and undertake to remit the same as directed by the Adjudicating Officer.