Pyramid Saimira promoters barred from market

The Securities and Exchange Board of India on Thursday barred Nirmal N Kotecha, the promoter and one of the largest stakeholders in
Pyramid Saimira Theatre from dealing in the securities market till further directions.

A release issued by the regulator said that Mr Kotecha had "masterminded" the forgery of a Sebi letter directing the promoters of PSTL to make a open offer to minority shareholders. After the forged letter appeared in the media , Mr Kotecha used the temporary spurt in the stock price to offload a substantial portion of his holding in the firm.

"Shri Nirmal N Kotecha was also found to be using a large number of front accounts including his related persons/entities to manipulate the securities market and to route the funds through several layers in order to hide the source and flow of funds, and this prima facie appears to be a money laundering activity," the release said.

The regulator also barred PS Saminathan, the CEO of PSTL, also from dealing in the stock market till further notice. "Shri PS Saminathan has prima facie made misleading public announcements, only to create public interest in the scrip of PSTL for facilitating Nirmal Kotecha in off-loading the shares of PSTL at artificially inflated price in the market," the release said.

Sebi has passed a similar order against Rakesh Sharma, an exemployee of public relations firm Adfactors, and Rajesh Unnikrishnan, an employee of The Economic Times, for having allegedly "facilitated the publication in the media of the forged letter." ET is looking into the matter. Stock broking firm Keynote Capital has been barred from giving any trade recommendations on listed companies till further notice, while two other brokerages, India Capital Markets and Dynamic

Stock Broking have been barred from entering into any fresh agreements with new clients.

via ET