SEBI Probes LS Industries for Stock Manipulation and Bans Key Entities

The market regulator uncovered a pump-and-dump scheme involving a zero-revenue company with inflated valuations and suspicious trading practices.

SEBI has banned LS Industries Ltd (LSIL), its promoter, and four other entities from the securities market over alleged stock price manipulation.
The company's share price surged by 1,089% within two months in 2024, despite negligible revenues and poor financial health, before crashing by 84%.
A former director sold his 12.12% stake, valued at ₹154.32 crore, to Dubai-based NRI Jahangir Panikkaveettil Perumbarambathu (JPP) for just ₹75 ($1) in an off-market transaction.
JPP and other entities involved in the scheme are accused of artificially inflating LSIL's stock price by placing early buy orders at upper circuit limits and later offloading shares for profit.
SEBI has frozen the bank accounts and assets of JPP and directed him to return ₹1.14 crore in unlawful gains while continuing its investigation into the matter.