Shares of Vedanta and Hindustan Zinc declined in early trade on Wednesday after the Enforcement Directorate initiated searches at multiple premises linked to the Anil Agarwal-led Vedanta Group under the Foreign Exchange Management Act (FEMA). Investor sentiment turned cautious amid concerns over potential regulatory scrutiny and alleged foreign exchange violations.

Vedanta shares fell as much as 1.6 per cent during the session and were trading 1.5 per cent lower at ₹328.55 on the NSE at 10.08 am, close to the day’s low of ₹328.05 against the previous close of ₹333.55.

Hindustan Zinc shares also came under pressure, declining 1.4 per cent in early trade. The stock traded at ₹617.30 on the NSE at 10.07 am, down 1.25 per cent after touching an intraday low of ₹616.20 compared with the previous close of ₹625.10.

The Enforcement Directorate carried out searches at four locations linked to Vedanta Ltd., including offices in Delhi, Mumbai and Udaipur in Rajasthan. However, the agency has not disclosed the exact nature of the alleged violations being probed.

Confirming the development, a Vedanta spokesperson said Enforcement Directorate officials visited certain offices of Vedanta and Hindustan Zinc and that the company was extending full cooperation to the authorities.

Published on June 3, 2026