Shares of Refex Industries dropped almost 16% on Monday, December 15, after the company confirmed that Income Tax Department search operations were conducted at its premises between December 9 and December 13.
In its exchange filing, the company said the multi-day search concluded late on December 13 and clarified that no communication, notice or adverse order has been issued by the authorities so far. Refex added that it fully cooperated with officials and provided all documents sought during the process. It also emphasised that business operations remain unaffected.
Separately, the stock also reacted to another disclosure:
SEBI imposed a ₹10 lakh penalty on promoter and non-executive director Anil Jain for allegedly communicating unpublished price-sensitive information to certain entities who later traded in the stock, making gains of ₹12.33 lakh.
Refex clarified that the penalty is on Jain in his individual capacity, carrying no financial or operational impact on the company itself. Jain is expected to challenge the order legally.
The combination of an extended tax department search and regulatory action linked to a key promoter weighed heavily on market sentiment, triggering the sharp sell-off in the stock.
