New Delhi, Sept. 17 -- Vedanta Ltd's proposed demerger has come under fresh scrutiny, with the ministry of petroleum and natural gas (MoPNG) raising objections before the National Company Law Tribunal (NCLT). At a hearing on Wednesday, the ministry alleged Vedanta had painted a misleading "rosy picture" of the proposed demerger, and had not fully disclosed regulatory and financial risks. The Anil Agarwal-led company denied the allegations.

Shares of Vedanta fell nearly 4% following the news and ended the session over 1% lower.

The ministry's objections were filed on the application of Vedanta seeking regulatory clearance from the NCLT on its proposed demerger under section 230-232 of the Companies Act.

"Whoever intends to merge or deme...