In a few months you must have seen the value of a share, two times, three times. But, you have rarely heard about reaching Rs 2,752 crore to Rs 2,752 crore. Not only this, during the peak, the value of these stocks reached Rs 22,700 crore. Now SEBI is investigating the matter. This case is related to LS Industries (LSIL). The company was formed in 1993. The special thing is that in two quarters of this financial year, the revenue of this company has been zero. SEBI has found in the investigation that between July and September last year, the price of this company’s stock rose from Rs 22.50 to Rs 267.
Market regulator issued interim order
SEBI’s hole-time Ashwini Bhatia issued an interim order cum show cause notice in this case on 11 February. Many things are discussed in this. In the last one year, there is also a mention of the rise and decline in the share price without any reason. It has also been said that the company’s financial condition was poor, due to which the price of shares does not match the announcement made by the company.
Fear of violation of FEMA in share transfer
Bhatia has also questioned the transfer of shares made by the company’s former director Suet Meng Chay to the Jahangir Panikaveettiil Perumbarambathu (JPP) of Dumb. He has written that this transfer of shares is feared to have a violation of FEMA. Therefore, to prevent this money from going out of India, there is a need to take steps from the market regulator soon. SEBI has banned the market activities of LS Industries, JPP and four entertainment related to the case till further orders.
Transfer of shares worth crores of rupees in just 1 dollar
JPP is estimated to have wrong benefits of Rs 1.14 crore by selling these shares in the market. This money has been confiscated. SEBI investigation has revealed that Suet Meng Chay transferred shares worth Rs 10.28 crore to JPP. The JPP’s CYC document shows that he is an administrative officer and an employee of Dutch oriental Mega Yach LLC (Dubai). These shares were sold for just 1 dollars. Within two years, the value of these shares increased to the sky.
Company’s revenue in FY25’s two three -sheeos
It is worth noting that in two years the company’s revenue and net loss were slightly more than Rs 40 lakh. In FY25, the company’s revenue is zero. It was later revealed that JPP was connected to LS Industries through its Facebook network. SEBI’s hole time director Bhatia has also cautioned investors. He has said that investors are exactly the same to invest in the company’s shares as children’s walk behind Hemilan’s pide piper. Many times the market earns well, but the market cannot earn such perhaps.
Market valuation 5,500 crores despite zero revenue
The whole matter came to light when NDTV Profit published a news on 3 February 2025. This news was told about this mysterious company, whose market valuation was Rs 5,500 crore despite zero revenue. After this news, SEBI immediately swung into action. He started investigating the case. He has said that as soon as the investigation started, it has been found that there is something wrong with the ups and downs in the price of the company’s shares. Between July 23, 2024 to September 27, 2024, the price of LSIL’s stock reached Rs 22.50 to Rs 267. This is a return of 1089 percent in just two months.