Refex Industries Shares Recover, Jump 9% After Clarification on I-T Search

Refex Industries experienced a significant turnaround in its stock performance today. This follows a nearly 20% drop on Friday, which was triggered by developments related to an income tax search and a SEBI penalty levied against one of its promoters.

After initially declining further on Monday, December 15, the stock reversed course. It had fallen 30% over the preceding three sessions. Refex Industries shares are currently trading 9% higher after recovering from the initial losses.

The company has released information to the exchanges regarding the Income Tax Department's search operations, which took place between December 9 and December 13. Refex Industries stated that these operations concluded on December 13. They also clarified that they have not received any communication from tax authorities indicating any negative findings as a result of the search.

Refex Industries emphasized that it and its officers fully cooperated with the Income Tax Department during the search, providing all requested information and documents. The company also confirmed that its business operations are continuing as usual and have not been affected.

In a separate disclosure, Refex Industries announced that SEBI has imposed a penalty of ₹10 lakh on Anil Jain, a promoter and non-executive director of the company.

The penalty stems from allegations that Jain, while serving as chairman and managing director, shared unpublished price-sensitive information with certain entities or individuals. SEBI alleges that these individuals then used this information to trade in Refex Industries shares, resulting in unlawful gains of ₹12.33 lakh.

Refex Industries clarified that the penalty applies to Jain in his individual capacity and will not have any financial, operational, or monetary impact on the company itself. The company further stated that Jain intends to contest the SEBI order and believes he has a strong legal defense.