Shares of Kolkata-based hosiery maker Lux Industries slumped 20 per cent on Tuesday, a day after Sebi barred 14 entities for insider trading in its scrip.
The regulator also impounded wrongful gains worth nearly Rs 3 crore. Those barred included Udit Todi, company’s executive director and son of the MD.
Sebi’s initial findings revealed that Todi has passed price sensitive information pertaining to financial results of the company.
The information was allegedly used to build long position in shares of Lux by connected entities in May 2022 ahead of its result announcement. Shares of Lux ended at Rs 2,808, down Rs 702, or 20 per cent.
The company in a statement to stock exchanges said, “The company has initiated the process of seeking required clarification and explanation from the concerned person.”
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU