Sebi Market Ban: Sebi Extends Ban on LS Industries Amid Fraud Allegations, ET LegalWorld
Sebi on Friday said LS Industries, its promoter, and four others will remain barred from the securities markets till the outcome of a probe following allegations of fraudulent activities and stock price 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 also been prohibited from the markets.
"...hereby confirm the directions issued vide the interim order dated February 11, 2025," Sebi's whole-time member Ashwani Bhatia said in the confirmatory order.
Advt
Advt
The markets watchdog also said the timeline to complete the investigation in this matter is extended to November 15 and the entities are directed to cooperate with Sebi's probe in the right earnest.In February this year, Sebi had passed an interim order and restrained LS Industries, Profound Finance and four others from the securities markets following allegations of fraudulent activities and stock price manipulation.Sebi had also directed Perumbarambathu to impound unlawful gains of Rs 1.14 crore from the sale of shares as part of a prima facie fraudulent scheme.The matter pertains to LS Industries and its key associates were involved in artificially inflating the company's share price despite negligible revenue and financial instability.In the interim order, Sebi noted that LS Industries reported negligible revenue in the last three financial years (FY22-FY24) and first three quarters of FY25, which indicated that the company was not doing any business during this period.Despite poor financials, the share price of LSIL rose by over 10 times from Rs 22.50 to a high of Rs 267.50 between July 23, 2024 and September 27, 2024, with the company reaching a peak market capitalisation of about Rs 22,700 crore.The sudden price movement in the scrip without any meaningful change in fundamentals, the dubious transfer of shares to Perumbarambathu, and the suspicious trading patterns of certain entities came under the scanner.It prima facie appeared that the entities were part of a manipulative scheme designed to defraud investors and allegedly violated the provisions of PFUTP ( Prohibition of Fraudulent and Unfair Trade Practices ) rules.
Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis.
Download ETLegalWorld App Get Realtime updates
Save your favourite articles
Scan to download App
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NDTV
32 minutes ago
- NDTV
Life Term For Man Who Sexually Assaulted 19-Year-Old In Anna University
Chennai: Gnanasekaran, a biryani vendor convicted in the high-profile sexual assault case at the Anna University, has been sentenced to life imprisonment. He has also been fined Rs 90,000, a Mahila Court in Chennai read out the punishment for sexually assaulting a 19-year-old student last December. The convict must remain in prison for at least 30 years, said Judge M Rajalakshmi. The judge found Gnanasekaran guilty on all 11 charges last week, including sexual assault, rape, intimidation, and kidnapping. At least 29 witnesses testified in the case, and the police filed a 100-page chargesheet. He had earlier pleaded for minimum punishment, citing his need to be at home to look after his elderly mother and eight-year-old daughter. But in view of his conviction on all the charges, he must get the maximum punishment, the judge had said. On December 23, Gnanasekaran entered the university campus and attacked a friend of the teenager, and then sexually assaulted her. He had also filmed the act with an intention to blackmail her. He was arrested the same day. The sexual assault case that found closure after five months of trial had also sparked a massive row in December. Welcoming the conviction, Leader of Opposition Edappadi K Palaniswami had raised that the convict had spoken to a certain "sir" during the sexual assault. The identity of this alleged person remains unknown, with the police saying he had only pretended to speak to someone, and no one else was involved. During his questioning, the convict had also confessed to carrying out thefts at several houses in Chennai, sources had said, after over 100 sovereigns of gold and a luxury SUV were seized from him. The probe also sparked concerns over the survivor's identity being revealed through the FIR that was easily accessible online. Indian law protects the identity of sexual assault survivors to prevent social stigma. The police had denied leaking the details and blamed the centrally administered police website for not restricting sensitive information. Slamming the police investigation, the court had formed a women-only Special Investigation Team (SIT) to probe the sexual assault case as well as the alleged FIR leak. Calling the leak a serious lapse, it had directed the government to provide Rs 25 lakh as interim assistance to the survivor for the trauma. The sexual assault case had given the opposition AIADMK a fresh arsenal to target the ruling DMK over women's safety and declining law and order in Tamil Nadu. The DMK had then vowed to fast-track the probe and ensure justice. BJP state chief K Annamalai had flogged himself in public in a symbolic act over the incident, for what he had described as the deteriorating law and order situation. He had also announced a 48-day fast and a mega pilgrimage as part of his protest. Mr Annamalai had also shared a photo of the convict with Chief Minister MK Stalin's son, Udhayanidhi Stalin, claiming that Gnanasekharan was a DMK member. The DMK had trashed the charge, with MK Stalin asserting he was just a supporter, not a member.
NDTV
32 minutes ago
- NDTV
Food Safety Raids: 8,000 Cold Drink Bottles In UP, Ghee Worth Rs 23 Lakh Confiscated In Gujarat
The Food Safety and Standards Authority of India (FSSAI) is currently conducting investigations and food safety raids in multiple food outlets across cities. These inspections are necessary to check that food businesses are adhering to the strict quality and hygiene standards of the food they are serving to customers. In an Instagram post shared by FSSAI on May 31, 2025, the authority shared that the Food Security Department conducted a raid at an unlicensed cold drink factory in Sambhal, Uttar Pradesh. Nearly 8,000 bottles and products worth Rs 1.07 lakh were seized from Nawada Mohalla. The warehouse was sealed, and the sample was sent to Lucknow for investigation. Pictures shared by FSSAI show multiple cold drink bottles in packets and crates, along with the machine used in the production of these unlicensed soft drinks. See the post here: View this post on Instagram A post shared by FSSAI (@fssai_safefood) In another post on June 1, 2025, the department shared that the Food and Drugs Control Administration (FDCA) of Aravalli, Gujarat, conducted a coordinated raid on M/s Bapashri Dairy Products in Bhiloda, Aravalli, Gujarat, in collaboration with the Police and the Forensic Science Laboratory (FSL) team. "During the operation, seven samples were collected. Stocks of ghee and butter were deemed suspicious, weighing over 4.4 tons and valued at Rs. 23.74 lakh, and were confiscated. Additionally, it was identified that the firm was operating without a valid FSSAI license, prompting further necessary legal actions," FSSAI shares. See the post here: View this post on Instagram A post shared by FSSAI (@fssai_safefood) Images shared on the post reveal the brand as "Meshu Pure Ghee", with several cartons of the ghee lined next to each other. While the packaging shows an FSSAI mark, as shared in the post, the firm did not have a valid FSSAI license.
Business Standard
32 minutes ago
- Business Standard
Aegis Vopak Terminals slips on debut
Shares of Aegis Vopak Terminals were currently trading at Rs 228.95 at 10:14 IST on the BSE, representing a discount of 2.57% compared with the issue price of Rs 235. The scrip was listed at Rs 220, exhibiting a discount of 6.38% to the issue price. So far, the stock has hit a high of 235.75 and a low of 220. On the BSE, over 6.57 lakh shares of the company were traded in the counter so far. The initial public offer of Aegis Vopak Terminals was subscribed 2.09 times. The issue opened for bidding on 26 May 2025 and it closed on 28 May 2025. The price band of the IPO is fixed between Rs 223 and 235 per share. The offer comprised a fresh issue of up to 119,148,936 equity shares at the upper price band of Rs 235 and 125,560,538 equity shares at the lower price band of Rs 223, aggregating to Rs 2,800 crore. The company will use the IPO proceeds to repay borrowings worth Rs 2,015.95 crore, fund Rs 671.3 crore towards acquiring a cryogenic LPG terminal at Mangalore, and for general corporate purposes. As of 31 March 2025, total borrowings stood at Rs 2,474.17 crore. The Mangalore terminal, with a total capex of Rs 968 crore, is expected to commence operations by June 2025. The project is being developed by Sea Lord Containers, a wholly owned subsidiary of Aegis Logistics and part of the promoter group. Ahead of the IPO, Aegis Vopak Terminals on Friday, 23 May 2025, raised Rs 1,259.99 crore from anchor investors. The board allotted 53,617,021 shares at Rs 235 each to 32 anchor investors. Aegis Vopak Terminals is India's largest third-party tank storage operator for LPG and liquid products, with a total capacity of 1.5 million cubic meters for liquids and 70,800 tonnes for LPG as of 31 December 2024. The company accounts for approximately 11.5% of Indias total LPG static storage capacity and 25.5% of third-party liquid storage capacity. Aegis Vopak is a joint venture between Aegis Logistics (50.1%) and Vopak India BV (47.4%), part of Dutch-based Royal Vopak, a global leader in tank storage with 77 terminals in 23 countries. The company is expanding LPG storage capacity to 200,800 tonnes by FY26 and recently added 101,900 cubic meters of liquid storage at its JNPA terminal in Navi Mumbai. The firm reported a consolidated net profit of Rs 85.8910 crore and total income of Rs 464.18 crore for the nine months ended on 31 December 2024.
