SEBI orders attachment of Pyramid bank accounts

Our Bureau Updated - October 11, 2013 at 09:38 PM.

The market regulator SEBI has ordered that the bank accounts (held singly or jointly) of Pyramid Saimira in Chennai and Mumbai with Allahabad Bank, HSBC and HDFC Bank, be attached.

No debit (withdrawal) from the accounts can be done without consent of SEBI’s recovery officer, it said. The direction has been given on the apprehension that the money could be withdrawn from these accounts.

SEBI has directed the banks to immediately confirm the attachment of the accounts. It has also sought details of all the accounts, including lockers. The market regulator has asked the banks to provide it with the latest statements of these accounts.

The case relates to the fake letter received by P.S. Saminathan, Managing Director, Pyramid Saimira Theatres, to make an open offer at Rs 250 a share on December 21, 2008. SEBI then barred the promoter-chairman of entertainment chain Pyramid Saimira Theatres, P.S. Saminathan, and four others, including Nirmal N. Kotecha, (co-promoter) from the securities market for forgery, disseminating false information and manipulating the share price of the company.

SAT upheld the SEBI order and trading in the company’s scrip was suspended on the bourses from May 2010. The Supreme Court upheld the ban in July 2010. Two months later, the company went into liquidation.

Published on October 11, 2013 16:08