Dec

24

Pyramid says Sebi note forged

Posted on: December 24, 2008 at 11:13 am | 121 views




Chennai, Mumbai: In a curious twist of events, Chennai-based entertainment chain Pyramid Saimira CMD PS Saminathan on Tuesday accused rivals of forging documents purportedly sent by Sebi directing promoters to make an open offer for an additional 20% in the company at Rs 250 a share. However, he did not elaborate on the identities of these rivals. Sebi has denied sending the company any such notification.

Saminathan also alleged that market manipulators were hammering his company’s stock in order to launch a hostile takeover. He has sought a probe by central investigation agencies into the episode, claiming he has evidence of such manipulation over the last few days, the sources of funds and beneficiaries. “Pyramid is contemplating filing criminal charges and is in consultation with its lawyers,” he said.

On Monday, a section of the media had reported the Sebi ‘order’ to make an open offer, after the promoters allegedly increased their stakes through the creeping acquisition route over the threshold limit. But Saminathan told reporters in Chennai that the Sebi order was a forgery. “Only a senior official of the takeover department of Sebi normally sends communications, that too through fax. However, in this case, the company received a letter from Sebi’s corporate finance department, which later turned out to be forged,” he said.

The company also called upon BSE and NSE to block payouts on transactions executed on December 22, when the Pyramid counter saw over 75 lakh shares changing hands on a single trading day. It also sought a probe by the surveillance departments of Sebi and the two stock exchanges into the sudden surge in volumes, despite the company and its promoters denying news of receiving a letter from Sebi on that date.

Meanwhile, Sebi has said it would be investigating the forged document. In a statement, the market regulator said, “Sebi is investigating into the matter, including the origin of the letter. Sebi is also separately inquiring into dealings in the scrip following press reports, including alleged violation of Sebi (Sast) Regulations, 1997.”

As of September 30, Saminathan held 62.12 lakh shares aggregating to a 21.97% stake in Pyramid Saimira. The total promoter holding in the company as of the September quarter was 53.60%, amounting to 151.56 lakh shares.

Market experts say that on Monday, Saminathan was to pick up a further 22% stake from co-promoters. The price at which the deal was to be struck and announced by the company was said to be below Rs 200. On stockbroker, on condition of anonymity, said the company had witnessed several speculative surges.

He also indicated that there was a lot at stake for some market operators and, therefore, adequate incentive to forge the Sebi documents and systematically leak it to select brokers and the media.

As things stand, Saminathan has stated that he would go ahead with the inter se buyout of co-promoter Nirmal Kotecha’s 22% holding in the company and that there is no need to make an open offer as the deal does not fall under creeping acquisition norms. The promoters have, in the last few months, bought only a small percentage of shares from the open market he clarified.

-The Financial Express.

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