SEBI restrains Manjholi-based industrial firm from securities markets
The Securities and Exchange Board of India (SEBI) restrained Manjholi-based LS Industries, its promoter Profound Finance and four others from the securities markets till further orders. The directions were issued yesterday following allegations of fraudulent activities and stock price manipulation as per its probe.
The said firm is located at Bairsen village in Manjholi area of Nalagarh. “They have been restrained from buying, selling or dealing in the shares of LSIL either directly or indirectly until further order” as per the SEBI order issued today.
The SEBI noted that the company and its promoter devised a scheme in which ex-director of the company, Suet Meng Chay, first transferred 12.12 per cent holding of the company for just USD1 to JPP, then entities namely Multiplier Share & Stock Advisors Private Limited, Setu Securities Pvt. Ltd., Paresh Dhirajlal Shah and Ruchira Goyal caused the sudden spike and fall in the share price of the company. Further, contrary to all the positive announcements made by the company, when the share price touched its high of Rs 267.5 on September 27, 2024, the JPP sold some of his shares at Rs 267.5. The trading pattern of the JPP also indicated that he sold most of his shares only during the period when there was price rise, i.e. in Patch-I and Patch-III.
It was prima facie observed that LSIL, its promoter, viz., Profound Finance Pvt. Ltd., JPP, Suresh Goyal, Alka Sahni and Shashi Kant Sahni HUF were part of a manipulative scheme designed to defraud the investors. Accordingly, they are alleged to have prima facie violated various provisions of regulations. Further, on the analysis of bank statements of the JPP, it was observed that soon after selling his shares, he remitted funds to Dubai.
Therefore, out of 10,28,82,050 shares received by the JPP for USD1, he sold a fraction of shares, i.e., 1,06,500 shares and made Rs.1.14 crore. As of February 10, 2025, he is still holding shares worth Rs. 698 crore. Further, trading pattern of Suresh Goyal (Father of Karan Goyal) was also found to be suspicious. It was noted that he sold shares only during the Patch-I, where huge price rise was seen. It was seen that in Patch-I, a total of 5,62,457 shares were traded, out of which 30% shares, viz., 1,68,850 shares were sold by Suresh Goyal alone. The trade details of Suresh Goyal are being probed.
