Lux Inds hits LC
Lux Industries is currently the top loser on the BSE, opening almost 5% lower at Rs.3343 and soon hit the 20% LC of the day at Rs.2808.30, where it now remains frozen.
The stock hit the bottom today after SEBI barred 14 entities for indulging in insider trading and ordered impounding ill-gotten gains of Rs 2.94 crore in the company. Among the 14, there is also Udit Todi, the son of the company’s MD, currently the Executive Director.
SEBI’s surveillance alert system detected suspicious trading pattern in the scrip of Lux around the announcement dated May 25, 2021 regarding the audited financial results for the quarter and financial year ended March 31, 2021, wherein substantial increase in profits both on a quarter-on-quarter as well as a year-on-year basis was observed. SEBI found that a group of connected/ related entities were observed to have taken long positions in the scrip and squared off the said long positions, making substantial profits.
SEBI found that Udit Todi had prima facie passed on the Unpublished Price Sensitive Information (UPSI) to his connected entities, who in turn passed it on to others.