Lux Industries shares surge 10% after Sebi revokes ban on 14 entities

economictimes.indiatimes.com:

Lux Industries jumped over 10% on Tuesday to the day's high of Rs 1,530 on the NSE following the Indian market regulator's decision to revoke the securities market ban imposed by it on 14 entities on account of alleged insider trading in the company.

In a 10-page order by the Securities and Exchange Board of India (SEBI), the regulator said that the charges levelled against them could not be sustained. The 14 entities include Udit Todi, the son of the managing director of Lux, who is currently holding the post of executive director in the company, according to Sebi's order.

In January 2022, SEBI, through its interim order had barred 14 entities from indulging in insider trading and ordered impounding ill-gotten gains of Rs 2.94 crore in the matter.

Later, the directions were confirmed by Sebi in May 2022.

After the conclusion of the investigation into the matter, Sebi said that a restraining direction issued against these entities through an interim order and a confirmatory need not be continued.

Revoking the securities market ban, Sebi observed that the «flow of communication of UPSI could not be established on account of lack of evidence. In the absence of cogent evidence available on record to show as to how the UPSI was communicated, the charges levelled cannot be sustained.»

The Sebi order further said that the Rs 2.94 crore impounded in the matter will be released, along with the interest.

Concerning the communication of UPSI from Udit Todi to Mohd.

Mujtaba Khan, Sebi observed that Udit Todi had made one call to Khan during the Unpublished Price Sensitive Information (UPSI) period (on May 14, 2021).
Except for the said one call, no other material was found during the investigation that could establish the