SEBI Cracks Down on LS Industries for Alleged Stock Manipulation

SEBI has barred LS Industries, its promoter Profound Finance, and others from the securities markets due to alleged fraudulent activities. Dubai-based shareholder Jahangir Panikkaveettil Perumbarambathu must return unlawful gains. Investigations revealed manipulative schemes and suspicious trading, raising concerns about potential violations of trade practices and regulatory norms.

The Securities and Exchange Board of India (SEBI) has taken action against Himachal Pradesh-based LS Industries and its associates following allegations of stock manipulation and fraudulent activities. The market regulator barred LS Industries, its promoter, and key individuals from participating in the securities markets until further notice.

Among those restrained is Jahangir Panikkaveettil Perumbarambathu, a Dubai-based public shareholder who must impound unlawful gains of Rs 1.14 crore obtained from share sales. SEBI's interim order disclosed that LS Industries inflated its share price despite negligible revenue, raising concerns about undetected fraudulent schemes.

The order highlighted suspicious trading patterns and share transfers, which suggest possible violations of regulations. SEBI has emphasized the urgency of addressing these anomalies to prevent innocent investors from incurring significant losses. Ongoing investigations aim to uncover further discrepancies in the company's financial practices.

(With inputs from agencies.)