Sebi order impact: Lux Industries tanks 29% in two trading sessions

Shares of Lux Industries slipped another 11 per cent to Rs 2,501 on Thursday’s intra-day trade, plunging 29 per cent in the last two straight trading sessions after the market regulator Securities and Exchange Board of India (Sebi) barred 14 entities for insider trading in its scrip. The stock of Kolkata-based hosiery maker quoted lower for the sixth straight day, and has tanked 35 per cent during the period.

Those barred included Udit Todi, company’s executive director and son of the MD. Sebi’s initial findings revealed that Todi passed price sensitive information pertaining to financial results of the company, the Business Standard reported.CLICK HERE FOR FULL REPORT

On Sebi order, Lux Industries said that the company understands that this is an Ex Parte Interim Order which is passed pending investigation and the observations are prima facie.

The company believes that there has been no violation and any infractions committed by the company in any manner. The company has initiated the process of seeking required clarification and explanation from the concerned person, Lux Industries said in media statement.

The company further said it takes all compliances issues seriously and have already started the process to examine and review the Code of Conduct for prevention of Insider Trading and the terms of employment as advised by SEBI in the order. The company also remains committed to assist and extend its support to SEBI in the matter, it added.

At 10:12 am; Lux Industries erased most of its losses and was down 2 per cent at Rs 2,760.45 on the BSE. The stock hit an intra-day high of Rs 2,777. In comparison, the S&P BSE Sensex was down 1.5 per cent at 56,987.

Despite of the past six days decline, the stock has rallied 70 per cent in the past one year, as compared to 20 per cent rise in the S&P BSE Sensex.