The Securities and Exchange Board of India (SEBI) banned 14 entities for interfering in insider trading and ordering the illegal seizing of Rs 2.94 Crores in Lux Industries Ltd. The surveillance alert system of SEBI had noticed a suspicious trading pattern in Lux Industries on 25th May 2021, regarding the audited financial results for the quarter and financial year ending 31st March 2021, and an increase in profits on a quarter-on-quarter as well as a year-on-year basis was also noticed.

Following the announcement, the company’s scrip recorded a price rise of 40.75 per cent on close to close basis in three successive trading days. On reviewing the alerts related to financial results, SEBI found that a group of connected entities have taken long positions in the scrip. And later, the entities squared off the long positions and generated substantial profits. The entities took significant long positions in the scrip of Lux Industries beginning from 21st May 2021 in their trading accounts or by placing orders in the trading accounts of their related entities.