Biz Updates: Major action by SEBI, LS Industries, promoters and four others banned from securities market
New Delhi| SEBI banned Himachal Pradesh-based LS Industries, its promoter Profound Finance and four others from the securities market till further orders following allegations of fraudulent activities and share price manipulation. The market regulator has also directed Dubai-based NRI public shareholder Jahangir Panikkavetil Perumberambathu (JPP) to seize Rs 1.14 crore of illegal profits from the sale of shares under a prima facie fraudulent scheme, the order said.
SEBI has also banned Suresh Goyal, Alka Sahni, Shashikant Sahni HUF and JPP from the securities market till further orders. The regulator has directed entities to cooperate with SEBI’s investigation by submitting all relevant information. The case concerned LS Industries and its key associates were involved in artificially inflating the company’s share price despite negligible revenues and financial volatility.
In an interim order passed, SEBI said LS Industries Limited (LSIL), a BSE-listed entity, and its promoter prepared a plan in which the company’s former director Suet Meng Chai initially transferred the company’s 12.12 per cent stake to JPP for just one dollar Subsequently, entities like Multiplier Share and Stock Advisors Pvt Ltd, Setu Securities, Paresh Dheerajlal Shah and Ruchira Goyal were involved in the sharp rise and fall in the company’s shares.
Moreover, contrary to all the positive announcements made by LS Industries, when the share reached a high of Rs 267.50 on September 27 last year, JPP sold some of its shares at the highest price.
