Chennai-based Refex Industries on Sunday said the Securities and Exchange Board of India (Sebi) has imposed a penalty of ₹10 lakh on its chairman and managing director Anil Jain, and a joint penalty of ₹25 lakh on Kamlesh Jain and the Jain Family Trust, for alleged insider trading violations involving the company’s shares.
The disclosure comes at a time when the income tax (I-T) department concluded a four-day raid over unexplained overseas investments linked to the Refex group and its associates on Saturday.
Sebi Allegations
In an exchange filing on Sunday, Refex Industries said Sebi has alleged that promoter Anil Jain communicated Unpublished Price Sensitive Information (UPSI) to certain entities or persons, who then traded in the company’s scrip while in possession of such information. Sebi said these trades resulted in unlawful gains of ₹12.33 lakh, in violation of multiple provisions of Sebi’s Prohibition of Insider Trading (PIT) Regulations.
The company said the penalty has been imposed on the individual and will have no financial, operational or monetary impact on Refex Industries. “Anil Jain intends to vigorously contest his position, and believes he can strongly defend the same through the legal process and would avail recourse available under law, against this penalty adjudication order,” it added.
Concluding I-T Searches
Earlier, the Income Tax Department had conducted search operations from December 9 till late evening on December 13 at the company’s registered office and other locations associated with the Refex Group.
In a separate filing, Refex Industries said it has not received any communication, notice or order from the I-T department indicating any adverse findings following the searches. “Certain media reports and social media posts suggesting adverse outcomes are speculative in nature and are not supported by any official communication.”
Shares of Refex Industries had hit a 20% lower circuit on Friday, falling to around ₹254.90, their lowest level since August 2024.