In a recent development, the Securities and Exchange Board of India (SEBI) has lifted a securities market ban on 14 entities, including Udit Todi, the executive director of Lux Industries, and son of its managing director. The decision led to a 10% surge in Lux Industries shares today.
The entities had previously been barred from insider trading in January 2022, with ₹2.94 crore ($395,000) seized as illicit gains. However, the conclusion of SEBI's investigation found insufficient evidence to maintain these charges, resulting in the revocation of the ban and the release of the seized amount plus interest.
During the Unpublished Price Sensitive Information (UPSI) period, Udit Todi had one phone call with Mohd. Mujtaba Khan. However, SEBI found no further evidence of UPSI communication from Todi to Khan or any other entities.
The investigation also concluded that trades executed by Sanjeev Bubna through entities like Indi Stock Pvt Ltd were not influenced by UPSI. Furthermore, no material was discovered to prove UPSI communication from Udit Todi to Mohd. Mujtaba Khan and from Khan to other entities including Evermore Stock Brokers Pvt Ltd, Akshay Kapoor, Suyash Somani, Avani Todi, Bubna, Shubham Somani, Dinero Finance and Investments Pvt Ltd, Anju Somani, and Sunder Somani.
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