Mumbai: After more than five years, Sebi on Tuesday lifted the ban imposed on 217 entities with regard to alleged manipulation in the trading of shares of Pyramid Saimira Theatres.
Following preliminary findings, Sebi had prohibited 230 entities from the capital market in April 2009 through an interim order with respect to the case. The primary allegation was related to transferring funds amongst themselves without any explanation about the purpose of the same.
As the suspicious banking transactions relating to the entities were alleged to be linked to potential money laundering activities, the interim report was provided to the Financial Intelligence Unit (FIU) and the Reserve Bank of India (RBI).
In a 16-page order on Tuesday, Sebi Whole Time Member S Raman said the prohibition need not continue as the 217 entities have "undergone various periods of prohibition since April 23, 2009 (ranging from two-and-a-half to more than five years)".
According to the order, RBI audit report on the matter indicated the role of the entities/persons being restricted to suspicious banking transactions while there was no adverse comments from the FIU.
"... I note that the investigation did not reveal any trading in securities market by these entities, particularly in the scrip of Pyramid Saimira Theatres Ltd (PSTL).
"The primary allegation against them is with regard to transferring funds amongst themselves without any explanation about the purpose of the same. It is also noted that the entities have undergone debarment since the passing of the interim order," Raman noted.
In the interim order, Sebi had prohibited 230 entities.
"The reason for the exclusion of these 13 entities from the list is on account of the fact that out of these 13 entities, the proceedings against 3 entities stand concluded while proceedings against 10 other entities are ongoing," the latest order said.
Sebi began probe into trading of PSTL shares after media reports in December 2008 had said that the regulator has asked the company's promoter P S Saminathan to make an open offer for allegedly violating norms at a price not less than Rs 250.
However, preliminary inquiries had revealed that such a direction was never issued and that the purported Sebi letter was forged.
