SEBI exonerates Pyramid director in accounts manipulation case

SEBI said he was appointed as a non-executive independent director on the board of PSTL on 30 June 2008, and resigned from the directorship on 24 February 2009 while investigation observed that the accounts were allegedly manipulated for the financial year 2007-08

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) today exonerated N Venkataraman, former director of Pyramid Saimira Theatre (PSTL), saying that he was not a board member when financial irregularities took place at the firm, reports PTI.

It said investigations into the company's affairs have revealed that accounts were manipulated during 2007-08, before MR Venkataraman was appointed as a director in PSTL.

An order of the Securities and Exchange Board of India (SEBI) said, "...the noticee (Mr Venkataraman) was not a director of the company during the relevant year, i.e., 2007-08... The noticee was not a member of the audit committee of PSTL at any time during his tenure.

"After taking into consideration all the facts and circumstances of the case and material available on record...

The case is accordingly disposed of."

In April 2010, SEBI issued a show-cause notice to Mr Venkataraman, who made a submission before it last December.

SEBI said he was appointed as a non-executive independent director on the board of PSTL on 30 June 2008, and resigned from the directorship on 24 February 2009.

"Investigation observed that the accounts were allegedly manipulated for the financial year 2007-08, i.e., before the noticee was appointed director of the company," SEBI said.

Last year, SEBI alleged that PSTL inflated its revenues and profits by fictitious entries in its accounts. It barred PSTL MD PS Saminathan from trading in the stock markets for 10 years.

In April this year, SEBI barred PSTL chairman and whole-time director V Natarajan and whole-time director N Narayanan from trading in securities or from holding similar positions in any listed company for up to three years for their role in the irregularities.

Earlier, it had barred three independent directors and members of the audit committee-KS Kasiraman, K Natarahjan and G Ramakrishnan-from holding a similar position in any listed company for two years for giving false and misleading statements.

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Share prices show resilience: Thursday Closing Report

Nifty’s rise has to go beyond 5,355 for the bounce to be meaningful

The market showed strong resilience today, shrugging off weak global cues, high food inflation data and poor US and Asian market trends, to end with decent gains. Buying in heavyweights also supported the upmove.

Weak global cues saw the domestic market opening lower today. The Nifty was down nine points at 5,269 and the Sensex started the day at 17,527, lower by 24 points. Banking, realty, auto and metal stocks were on the sellers' radar in early trade, pushing the indices to their intra-day lows in the first 15 minutes. At the day's low, the Nifty slipped to 5,252 and the Sensex to 17,482.

Select buying in stocks like Reliance Industries, ITC and Infosys helped the market overcome initial hiccups and trade in the green. The gains improved as the session progressed and investors shrugged off the spike in food inflation data. The market touched its intra-day high in noon trade, with the Nifty at 5,331, up 53 points and the Sensex surging 204 points to 17,755. Then a weak opening in the European markets dampened sentiments a little and the indices pared some gains. The market traded sideways thereafter, closing slightly below the highs of the day. The Nifty closed at 5,320, a gain of 41 points, and the Sensex advanced finished at 17,727, a good 177 points up.

After six trading sessions, the Nifty today managed a higher high and a higher close. The high of the day was 5,331. The intra-day high was the first resistance we had mentioned in Wednesday's closing report. The next resistance is at 5,355.

The advance-decline ratio on the National Stock Exchange was a poor 584:808.

While the key indices had a good session, the broader indices settled lower. The BSE Mid-cap index shed 0.06% and the BSE Small-cap index fell by 0.33%.

BSE Consumer Durables index (up 4.01%) was the top sectoral gainer. It was followed by BSE Fast Moving Consumer Goods (up 2.18%), Oil & Gas (up 1.95%), BSE IT (up 0.98%) and BSE TECk (up 0.79%). BSE Healthcare (down 0.53%), BSE Realty (down 0.36%) and BSE Metal (down 0.14%) were the losers.

ITC (up 3.37%), Reliance Communications (up 3.36%), Reliance Industries (up 2.90%), Hindustan Unilever (up 1.83%) and ONGC (up 1.36%) were the top stocks on the Sensex. Cipla (down 1.97%), Maruti Suzuki (down 1.72%), BHEL (down 0.78%), HDFC (down 0.78%) and Hindalco Industries (down 0.54%) were the losers on the index.

Among the Nifty stocks, ITC (up 3.46%), RCom (up 3.36%), RIL (up 2.95%), Reliance Capital (up 2.64%) and HUL (up 2.33%) were the gainers, whereas Maruti Suzuki (down 2.50%), Cipla (down 1.92%), IDFC (down 1.56%), Grasim (down 1.52%) and Sun Pharma (down 1.39%) were the losers.

Food inflation touched a two-and-half month high of 9.13% in the week ended 11th June from 8.96% in the previous week and 23% in the second week of June 2010. The latest food inflation numbers are the highest since the week ended 26 March 2011, when the rate of price rise of food items touched 9.18%.

Commenting on the development, finance minister Pranab Mukherjee said the high inflationary regime was not acceptable and efforts would be made to bring it down.

Concerns about the slowdown in the pace of the global economy resulted in the markets in Asia closing mixed. Lower GDP forecast by Federal Reserve chairman Ben Bernanke, at the end of the two-day central bank meeting yesterday, hurt investor sentiments.

Meanwhile, China's manufacturing may expand at the slowest pace in 11 months in June, a preliminary purchasing managers' index showed. The 50.1 level reported by HSBC Holdings Plc and Markit Economics compares with the final reading of 51.6 in May. Despite this, the Shanghai Composite settled higher.

The Hang Seng fell 0.46%, the KLSE Composite declined 0.27%, the Nikkei 225 was down 0.34%, the Seoul Composite slipped 0.39% and the Taiwan Weighted tanked 0.62%. On the other hand, the Shanghai Composite surged 1.44%, the Jakarta Composite added 0.05% and the Straits Times gained 0.06%.

Back home, foreign institutional investors were net sellers of stocks worth Rs287.40 crore on Wednesday. On the other hand, domestic institutional investors were net buyers of shares worth Rs157.37 crore.

RIL has made a natural gas discovery in the very first well drilled on its D9 block in the Krishna Godavari basin off the east coast of India, its junior partner Hardy Oil and Gas Plc said today. However, Hardy did not give the reserves that the discovery may hold, saying the potential commerciality of this discovery is being ascertained through more data gathering and analysis.

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UIDAI sets 1 million per day target for unique ID enrolment from Oct

UIDAI chairman Nandan Nilekani said plans are on track to issue Aadhaar numbers to 600 million people in three to three-and-half years

Bangalore: One million Indian residents are expected to enrol for unique identity (Aadhaar) number every day from this October, reports PTI quoting chairman of Unique Identity and Development Authority of India (UIDAI) Nandan M Nilekani.

"As UIDAI scales up the systems both at the back-end by adding more technologies and at the front by adding more enrolment stations, it is confident of achieving this goal," he said.

Speaking at a conference with the theme 'Next Generation Service Delivery-Enabled by Aadhaar', organised by NASSCOM and UIDAI, Mr Nilekani said as of now 95 lakh (9.5 million) people have been issued with Aadhaar numbers.

Another UIDAI official said the figure is expected to cross one crore today.

Mr Nilekani said plans are on track to issue Aadhaar numbers to 600 million (60 crore) people in three to three-and-half years. He said the entire enrolment infrastructure would stabilise in the next few months, adding, UIDAI has built a massive biometrics-based capabilities.

"We are very comfortable that in the next few months, we will have critical mass of people around the country who will have Aadhaar numbers with them," he said.

He said UIDAI would create for the first time in the country a national devices' infrastructure, which is inter-operable.

Mr Nilekani said devices compliant with Aadhaar standards-whether they are in bank branches, or kirana stores or post offices or in schools or public health centres or anywhere-would be inter-operable.

This means that one can withdraw money from a PC in post office from one's bank account elsewhere.

"This kind of inter-operability across different delivery points...is the first time it is going to happen (in the country)," Mr Nilekani said.

He said Aadhaar numbers would help people in having 'portable health records'-that logs their visits to hospitals-which can be 'locked and unlocked' only by them so that the privacy is maintained.

UIDAI would create a national online identity management platform. With Aadhaar numbers, people have online and 'portable' identity which can be authenticated and verified by across the internet and through mobile phones.

"Aadhaar will increasingly be the basic 'Know Your Customer' (KYC) for a wide variety of products and services," he said.

He said RBI and the finance ministry have already notified Aadhaar numbers to be KYC for opening bank accounts, The Department of Telecom has notified it to be KYC for getting SIM card or phone connection and Oil companies for LPG connection.

Sikkim and Tripura have notified that Aadhaar would be the basis for proof or identity, house address and for availing government services.

Increasingly in the next two-three years, Aadhaar would be the KYC to access a wide variety of products and services, Mr Nilekani said. "In other words, if you have Aadhaar number, that's sufficient proof of identity, sufficient proof of address and sufficient KYC to access that."

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COMMENTS

RNandakumar

5 years ago

Sorry the word prevent should be replaced by enable. Thanks

RNandakumar

5 years ago

Congrats to Mr.Nilekani on UDAI. The AAdhaar numbers should be first distributed to East Bengal, Arunachal Pradesh and other border states first. This would prevent the respective state govts in identifying true Indians and reduce their burden on distributing the resources to really deserving persons of Indian Nationality.

REPLY

Ashok

In Reply to RNandakumar 5 years ago

Sorry to say, Nandakumar, but you failed to read between the lines. The UID numbers (not cards believe me) are being issued to all residents and not all Indian citiens. This means, anyone who is residing in India (including Bangla Deshi's, Pakistanis, Nepalese etc) can easily get the Aadhaar numbers and then using this can get a ration card, bank account and other benefits.

RNandakumar

In Reply to Ashok 5 years ago

Thanks Ashok. Will not the govt check whether one is a resident or a migrant before issuing such numbers?

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