SAT rejects Pyramid plea against SEBI
6 Oct 2012 11:47 PM GMT
The Securities Appellate Tribunal on Friday dismissed appeals by four directors of Pyramid Saimira Theatre Ltd against market regulator SEBI's order restraining them from the market along with monetary penalties.
A major scam had come to light at Pyramid Saimira, which is engaged in the entertainment business, in 2009 and the case involved inflating the company's profits, a forged SEBI letter, manipulation of share price, among others.
Dismissing the appeal from four directors – promoter and whole-time director N Narayanan, and three independent directors K Natarahjan, K S Kashiraman and G Ramakrishanan, SAT said that they 'have not lived up to the responsibility of duty of care' as directors of the company. 'The appellants have employed a device so as to defraud investors in dealing in the securities.
They have also perpetrated fraud as defined,' SAT observed, while upholding SEBI's restrain orders and monetary penalty.
In the same case, the Tribunal [SAT] stayed another SEBI order against 11 persons, who were directors and partners, of certain companies who were alleged to have helped one of the promoters of Pyramid Saimira in carrying out suspicious banking transactions.
REGULATOR TO PROBE INTO NSE ‘FLASH-CRASH’
Market regulator SEBI has begun initial probe into the 'flash crash' of NSE index Nifty, which fell by nearly 900 points on Friday morning, halting the trade on the exchange for about 15 minutes.
While the National Stock Exchange [NSE] blamed 'abnormal' orders placed by stock broker Emkay Global in multiple trades of various stocks at low prices for the crash, sources said that regulator is looking into all aspects of the incident.  Â
A major scam had come to light at Pyramid Saimira, which is engaged in the entertainment business, in 2009 and the case involved inflating the company's profits, a forged SEBI letter, manipulation of share price, among others.
Dismissing the appeal from four directors – promoter and whole-time director N Narayanan, and three independent directors K Natarahjan, K S Kashiraman and G Ramakrishanan, SAT said that they 'have not lived up to the responsibility of duty of care' as directors of the company. 'The appellants have employed a device so as to defraud investors in dealing in the securities.
They have also perpetrated fraud as defined,' SAT observed, while upholding SEBI's restrain orders and monetary penalty.
In the same case, the Tribunal [SAT] stayed another SEBI order against 11 persons, who were directors and partners, of certain companies who were alleged to have helped one of the promoters of Pyramid Saimira in carrying out suspicious banking transactions.
REGULATOR TO PROBE INTO NSE ‘FLASH-CRASH’
Market regulator SEBI has begun initial probe into the 'flash crash' of NSE index Nifty, which fell by nearly 900 points on Friday morning, halting the trade on the exchange for about 15 minutes.
While the National Stock Exchange [NSE] blamed 'abnormal' orders placed by stock broker Emkay Global in multiple trades of various stocks at low prices for the crash, sources said that regulator is looking into all aspects of the incident.  Â
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