Shares of Sesa Sterlite gained marginally today on the bourses even as Norwegian sovereign wealth fund has been asked not to invest in the Vedanta group firm.
The scrip rose 0.67 per cent to close at Rs 188.50 on the BSE. On the National Stock Exchange, it increased by 0.59 per cent to end the day at Rs 188.30.
In intra-day trades, the company's shares touched a high of Rs 191.65 on the BSE after opening at Rs 189.
Sesa Sterlite shares reached an intra-day high of Rs 191.50 on the NSE after opening at Rs 188.
Norwegian government has asked its sovereign wealth fund, Government Pension Fund Global (GPFG), not to invest in Indian company Sesa Sterlite and two Israeli firms citing ethical issues.
The GPFG, estimated to be worth over USD 800 billion, is one of the world's largest sovereign wealth funds.
"Sesa Sterlite is a newly established subsidiary of Vedanta. The Council's assessment is that the relevant operations in India, which are currently run through the company Sesa Sterlite, present an unacceptable risk of environmental damage and serious violations of human rights," the statement said.
The Council of Ethics has regularly updated its assessment of Vedanta and the basis for exclusion is still considered to be present.
In accordance with the Council's recommendation, the Finance Ministry has decided to exclude Sesa Sterlite from the Fund's investment universe as well as to maintain the exclusion of Vedanta, it added.
"The recommendation builds on an earlier recommendation to exclude the company Vedanta Resources Ltd (Vedanta) and two of its subsidiaries, which operate in India. The Ministry followed the Council's recommendation to exclude Vedanta and its two subsidiaries in 2007," the statement had said.
