Sebi confirms market ban on LS Industries, promoter, 4 others, ETCFO
New Delhi, Sebi on Friday mentioned LS Industries, its promoter, and 4 others will stay barred from the securities markets until the end result of a probe following allegations of fraudulent actions and inventory worth manipulation.
Profound Finance (promoter of LS Industries), Jahangir Panikkaveettil Perumbarambathu, a Dubai-based NRI public shareholder of LS Industries, Suresh Goyal, Alka Sahni, Shashi Kant Sahni HUF have additionally been prohibited from the markets.
“…hereby affirm the instructions issued vide the interim order dated February 11, 2025,” Sebi’s whole-time member Ashwani Bhatia mentioned within the confirmatory order.
The markets watchdog additionally mentioned the timeline to finish the investigation on this matter is prolonged to November 15 and the entities are directed to cooperate with Sebi’s probe in the proper earnest.
In February this yr, Sebi had handed an interim order and restrained LS Industries, Profound Finance and 4 others from the securities markets following allegations of fraudulent actions and inventory worth manipulation.
Sebi had additionally directed Perumbarambathu to impound illegal positive aspects of Rs 1.14 crore from the sale of shares as a part of a prima facie fraudulent scheme.
The matter pertains to LS Industries and its key associates had been concerned in artificially inflating the corporate’s share worth regardless of negligible income and monetary instability.
Within the interim order, Sebi famous that LS Industries reported negligible income within the final three monetary years (FY22-FY24) and first three quarters of FY25, which indicated that the corporate was not doing any enterprise throughout this era.
Regardless of poor financials, the share worth of LSIL rose by over 10 occasions from Rs 22.50 to a excessive of Rs 267.50 between July 23, 2024 and September 27, 2024, with the corporate reaching a peak market capitalisation of about Rs 22,700 crore.
The sudden worth motion within the scrip with none significant change in fundamentals, the doubtful switch of shares to Perumbarambathu, and the suspicious buying and selling patterns of sure entities got here beneath the scanner.
It prima facie appeared that the entities had been a part of a manipulative scheme designed to defraud traders and allegedly violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Commerce Practices) guidelines. PTI
