This NRI earned 698 crores by investing just 1 dollar, now SEBI has taken action

The Securities and Market Exchange Board of India has taken major action against Himachal Pradesh based company LS Industries. 

SEBI has banned this company and 4 other companies associated with it from the market. This company is accused of manipulating the share prices and its links extend to Dubai. 

In this case, the name of Dubai based investor Jahangir Panikkaveettil Perumbarambathhu (JPP) has come to the fore. He is accused of making Rs. 698 crores by investing 1 dollar.

SEBI's investigation revealed that JPP had bought 10.28 crore shares of the company for one dollar and the value of its shares rose to Rs 698 crore by February 10, 2025, despite the company's revenue being zero. 

JPP's investment, which now values ​​the company at a high value of $328.6 million, has raised concerns over possible violations of FEMA regulations. 

The company's former director Suet Meng Chai transferred 12.12 per cent stake in the company to JPP for just $1. After this, there was a sudden rise in the price of its shares.

How did the fraud happen

The market regulator found in its investigation that JPP traded twice between July-September and November-December at a time when the market was booming. 

After that, most of the shares were sold at a high level of Rs 267.50 on 27 September 2024. A SEBI official said that such pump and dump schemes need to be stopped before they harm investors.

How is the investigation going on

SEBI found manipulation in the company's share prices in its investigation. The market regulator is now investigating the PFUTP and LODR rules. SEBI said that it is very important to take action to ensure market security and to prevent fraud with investors in the market.