SEBI letter forged - PSTL

Chennai-based entertainment and theater company Pyramid Saimira Theatre today said the letter which it had received from the regulator Securities Exchange Board of India (Sebi), with regard to the company's open offer, has been forged.

The company had requested the Bombay Stock Exchange and National Stock Exchange not to issue the pay out and to conduct a thorough enquiry into the company's share transaction on Monday. The company is also planning to launch a formal complaint with Central Bureau of Investigation (CBI) in this regard.

Speaking to reporters in Chennai today P S Saminathan, chairman, Pyramid Saimira Theatres said that the regulator had clarified to the company that it did not issue any letter and would issue a detailed press release later today.

Saminathan also denied all the points which has been stated in the so called letter sent by Sebi. "If the letter itself fraud, there is no point commenting on it," said Saminathan.

The letter dated December 19, 2008, which is in the circulation printed at the regulator's letterhead carrying Corporate Finance Department's Assistant General Manager signature. The letter subjected, "Violations of Sebi (SAST) Regulations by P S Saminathan & Pyramid Saimira Theatre", stated that Sebi had directed Pyramid Saimira to make an open offer to buy 20 per cent in the company at Rs 250 a share.

Meanwhile, the concerned courier company which delivered the letter to Samintahan, in written has confirmed that they received instruction from Sebi to deliver the letter on December 22. Saminathan noted, the regulator normally faxes such letters and does not courier them. He feels this is a deliberate attempt to defame the company.

He added, his current holding is 24 per cent in the company and planning to consolidated it by buying another 22 per cent from Nirmal Kotecha on Monday, which would haven taken to the total share holding of Saminathan to 46 per cent.

But on Monday company's stock surged as much as 10 per cent on the domestic bourses on reports that the promoters would make an open offer to the shareholders for acquiring a further 20 per cent stake. Shares of Pyramid Saimira surged 9.95 per cent in the opening trade to hit its upper circuit of Rs 82.90 on the BSE, which had put Saminathan's plan on hold.

Saminathan said there has been massive 75 lakh share trade and 25 lakh shares delivery marking which is completely abnormal.

The current share holding pattern of the company Saminathan – 24 per cent, Nirmal Kotecha – 22 per cent, Narayanan, 4 per cent, Other promoters – 4 per cent and Public – 46 per cent.

via Business Standard