Market regulatory body SEBI has clamped down on primary promoter of struggling theatre retail firm Pyramid Saimira, PS Saminathan, for his alleged involvement in the forged open offer letter scam. Saminathan, the SEBI Order (Release | 54 Page Report) says, helped ex-promoter Nirmal Kotecha off-load shares of PSTL at an artificially inflated price in the market. He has also been deemed guilty of misleading the public and trying to boost the scrip of PSTL with his statements. The Open Offer Letter In December, a forged letter of SEBI ordering Saminathan to make an open offer at a price that was at a substantial premium to its market price pushed the company into the limelight. Already suffering from bad fortunes, PSTL's stock has taken a nose dive, losing 94% of its market value in the past 6 months. The sudden dumping of shares by a Pyramid ex-director, Nirmal Kotecha, who held close to 25% of shares and had resigned from the company in November, sparked talk of price manipulation amongst shareholders. In the report of its investigations into the forged letter and Kotecha's tradings, SEBI has brought to light various aspects of allegedly fraudulent activity. Over 230 entities involved in it have been barred from trading on stock exchanges. Saminathan: A Victim Of Circumstances? In June 08, Saminathan had informed the exchange that he was purchasing 13,70,000 shares worth 4.845% of equity from Kotecha. His holding was already 17.29% so the buy was subject to SEBI regulations which required both the…
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