SAT asks Sebi to probe market norms violation by Vedanta-owned Cairn India

The Securities Appellate Tribunal (SAT) has directed markets regulator Sebi to look into the alleged violation of market norms by Cairn India, a subsidiary of Vedanta, with regards to withholding of dividends payable to Cairn UK Holdings.

The order came after Cairn UK Holdings Ltd filed an appeal with the tribunal against an order passed by Sebi.

In 2017, the UK based firm had approached the regulator over non-payment of dividend amounting to over Rs 340 crore by Cairn India and had appealed to Sebi to direct Vedanta's subsidiary to pay the dividend along with an interest of 18 per cent per annum.

In the appeal Cairn UK Holdings had asked to "initiate proceedings under ... Companies Act against every director of the Cairn India who were knowingly a party to the non-payment of the said dividend."
Thereby the order said, "in our opinion, it is open to the appellant to pursue his remedies for return of the dividend amount from the income tax authorities."