Vedanta Limited Restricted from Creating Security or Disposing HZL Shares Due to Debentures Issuance

Vedanta Limited (VEDL) has issued unsecured, listed, rated, redeemable, non-convertible Debentures (Debentures) of INR 2,575 Crore on a private placement basis. The Debenture Trustee is Axis Trustee Services Limited. According to the Debenture Trust Deed (DTD), VEDL is required to directly remain the legal and beneficial owner of 50.1% of the share capital of Hindustan Zinc Limited (HZL) until full and final redemption of the Debentures. VEDL is also restricted from creating any security over or disposing 50.1% of the entire issued share capital or voting rights in HZL. These conditions fall within the definition of 'encumbrance' under Chapter V of the SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011.