The Securities and Exchange Board of India (SEBI) prohibited Tuesday the Company Textile LS Industries of the securities market for the presumed manipulation of stock prices and fraudulent practices. The market regulator noted that the industries had a market capitalization of RS 22,700 crosses at the top.
LS Industries, despite a market capitalization of 5,768 roasters, said minimum income in the last three years. A SEBI survey revealed that in October 2022, former director Suet Meng Chay transferred all of his 12.12% participation in the company in Nri Jehangir Panikkaveettil Perumbarambathu, based in Dubai, according to information.
Although the actions transferred were evaluated at approximately Rs 154 crosses according to a course in the action of Rs 15 each, the transaction took place at a significantly lower price of RS 75 or $ 1 per share. The SEBI survey has revealed suspicious purchase orders placed by several entities at the limits of the circuit greater than 9 hours, which leads to a significant increase in the course of action. These actions led to an increase of 11 times in the share price in a short period of time of two months.
The regulatory organization issued a temporary order prohibiting LS Ltd industries (LSIL), as well as its promoters and individuals, to engage in the negotiation of its actions and to participate in the securities market until further notice, due to the allegations of shareholding of equity.
This action follows a SEBI survey on LSIL, a textile company that has declared a minimum of income. Although it does not record any sale in two quarters of the 2010 financial year, the course of LSIL action experienced a significant increase from RS 22.50 in July 2024 to Rs 267.50 in September – an increase in 11 times – before hunting at Rs 42.39 in November.
SEBI surveys have revealed a suspected scheme of Pump-And-Dump involving a group of merchants, including ADVISORS OF PVT actions and actions. Ltd. and Setu Securities PVT. It was found that these entities had placed the purchase orders at the boundaries of the upper circuit, leading to artificial inflation of the price of the action. Subsequently, they carried out shares, resulting in a significant drop in the value of the action.
The SEBI should conduct an in -depth investigation before May 15. Meanwhile, SEBI has asked the NRI to provide a complete list of its assets, investments and bank accounts, as well as to freeze the withdrawals of its accounts.
