SEBI Confirms Ban On LS Industries and Key Individuals Amid Fraud Probe

Mumbai: The Securities and Exchange Board of India (SEBI) has showed the suspension of LS Industries, its promoter Profound Finance, and 4 different people from taking part within the securities markets. 

The motion comes as a part of an ongoing investigation into allegations of fraudulent actions and manipulation of the corporate’s percentage value. The people barred come with Jahangir Panikkaveettil Perumbarambathu, the promoter of Profound Finance, in addition to Suresh Goyal, Alka Sahni, and Shashi Kant Sahni HUF, a Dubai-based NRI shareholder of LS Industries.

SEBI has prolonged the time limit for finishing the investigation till November 15 and has directed all concerned events to cooperate totally with the inquiry. Back in February 2025, SEBI had issued an intervening time order banning LS Industries and its mates from buying and selling within the inventory marketplace because of suspicious actions.

The regulator additionally ordered Perumbarambathu to go back unlawful good points of Rs 1.14 crore that he allegedly earned in the course of the sale of stocks beneath the suspected scheme. SEBI ‘s probe centres on LS Industries and its mates being interested in a scheme to artificially spice up the corporate’s percentage value.

Despite having reported nearly no earnings for 3 consecutive monetary years (FY22 to FY24) and the primary 3 quarters of FY25, the corporate’s inventory surged dramatically.

Between July 23 and September 27, 2024, the percentage value skyrocketed from Rs 22.50 to Rs 267.50 — elevating the corporate’s marketplace valuation to an eye-popping Rs 22,700 crore. This sharp upward thrust in percentage value befell with none development within the corporate’s monetary efficiency, elevating pink flags.

SEBI’s intervening time findings famous doubtful transfers of stocks to Perumbarambathu and extraordinary buying and selling patterns through some people. The regulator said that those elements strongly instructed a planned plan to misinform traders and manipulate the inventory.

SEBI emphasized that it seemed, at the floor, that LS Industries and the opposite events had been interested in a coordinated effort to misinform the marketplace. “The investigation is ongoing, and the parties will remain barred from market activities until its conclusion,” the marketplace regulator said.