SEBI drops LS Industries manipulation case after investigation fails to sustain allegations

However, SEBI noted other violations regarding listing obligations and non-compliance with summons, for which separate actions are being initiated.

Who it concerns: LS Industries Limited, Jahangir Panikkaveettil Perumbarambathu, Profound Finance Pvt. Ltd., Suresh Goyal, Alka Sahni, and Shashi Kant Sahni HUF

What SEBI found or ordered

• Revocation of all directions issued in the Interim Order dated February 11, 2025, and the Confirmatory Order dated May 30, 2025, with immediate effect.
• SEBI found that the allegation of price and volume manipulation in LSIL shares cannot be sustained based on detailed investigation.
• SEBI identified other violations of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, and non-compliance with summons.
• Appropriate action is being initiated for the newly found violations, and references are being sent to other law enforcement agencies.
• The revocation does not impact the suspension of trading of LSIL shares by BSE dated December 08, 2025.

Also in the document

• BSE site visits in January 2024, June 2025, and August 2026 found no plant, machinery, or textile business operations at the company's registered office.
• BSE suspended trading of LSIL shares again on December 08, 2025, following the June 2025 site visit findings.
• The order was passed by Kamlesh Chandra Varshney, Whole Time Member of SEBI, on October 09, 2026.