SEBI Banned Former Pyramid Chairman for Ten Years

Market regulator Securities and Exchange Board of India (SEBI) banned P S Saminathan, the former chairman of Pyramid Saimira Theatre from the markets for ten years. SEBI also banned Saminathan’s wife Uma Saminathan for five years. The husband wife duo were accused of  a host of acts like fudging the  accounts, misleading investors, making false corporate announcements and also for making a preferential allotment to themselves without any inflow of funds into the company. Saminathan was restrained from buying, selling or dealing in securities, accessing the securities market and also from becoming a director in any listed company for ten years. SEBI directed the former director of Pyramid to make an open offer to other shareholders of Pyramid at a price which will be determined by a valuer.

Sebi declared that Bombay Stock Exchange (BSE) will facilitate valuation of shares that Saminathan will purchase through the open offer, and in case the public shareholding in the company falls below the minimum regulatory requirement for listing, the firm should be compulsorily delisted.