Authority: Kamlesh Chandra Varshney, Whole Time Member, Securities and Exchange Board of India (SEBI)
Order Date: October 09, 2026
Case Overview
This order pertains to proceedings against LS Industries Limited (LSIL) and five other noticees (Jahangir Panikkaveettil Perumbarambathu, Profound Finance Pvt. Ltd., Suresh Goyal, Alka Sahni, and Shashi Kant Sahni HUF). SEBI had passed an Interim Order on February 11, 2025, based on prima facie findings that the noticees were part of a manipulative scheme designed to defraud investors, violating provisions of the SEBI Act and the PFUTP Regulations. These directions were confirmed via a Confirmatory Order on May 30, 2025. A detailed investigation was conducted simultaneously to examine the role of the noticees.
The background includes a complex trading history for LSIL's scrip. Trading was initially suspended by BSE with effect from December 30, 2013 (via notice dated December 05, 2013) due to non-compliances with the Listing Agreement. BSE issued a delisting show-cause notice on December 21, 2020. LSIL subsequently complied with uniform revocation norms, leading BSE to conduct a site visit on January 11, 2024. The visit found the Executive Director and Company Secretary present but no plant and machinery; the company had no sales or purchases and only rental income as it aimed to start a new business. Consequently, BSE revoked the trading suspension effective July 23, 2024 (notice dated July 15, 2024).
Following SEBI's Confirmatory Order, which advised BSE to take suitable action, BSE conducted a surprise site visit on June 11, 2025. This visit found no operational textile business, related plant/machinery, or stock of raw materials/finished goods at LSIL's registered office. The workforce was deemed insufficient for manufacturing, and IT assets/office infrastructure could not be verified due to a lack of records. This led BSE to suspend the company's shares again from trading via an interim order dated December 08, 2025. A subsequent site visit on August 05, 2026, found no change in circumstances, and related proceedings are ongoing at BSE.
The detailed investigation concluded that the primary allegation of price-volume manipulation in the LSIL scrip could not be sustained. However, the investigation found other violations of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations) and instances of non-compliance with summons by the noticees.
Final Outcome
SEBI has revoked, with immediate effect, all directions issued against the noticees via the Interim Order (dated February 11, 2025) and the Confirmatory Order (dated May 30, 2025). This revocation is based on the investigation's inability to substantiate the manipulation allegations. Appropriate proceedings are being initiated separately for the other violations (LODR breaches and non-compliance with summons) found during the investigation. A reference is also being sent to other law enforcement agencies for possible violations falling under their jurisdiction. This SEBI order does not impact BSE's order suspending trading (dated December 08, 2025), and BSE may continue its action for the proposed delisting of LSIL's shares as per securities laws.
Topics: SEBI Enforcement, Market Manipulation Investigation, Listing Compliance