US-based Viceroy Research LLC on Friday alleged that Vedanta Ltd.'s wholly-owned unit, Vedanta Semiconductor Pvt. Ltd., is essentially a “sham commodities trading operation” created to channel funds to its parent, Vedanta Resources Ltd., during a liquidity crisis.In a detailed report, the short-seller claimed Vedanta devised a scheme in April to remit brand fees to its UK-based parent. As part of the plan, the semiconductor unit raised ₹24.54 billion through a short-term rupee-denominated NCD issue in May, secured against 1% of Vedanta’s stake in Hindustan Zinc Ltd. The funds were then allegedly transferred to Vedanta Resources via a ₹24.08 billion, 24-month loan at 12%, Viceroy said.
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