SEBI had in an order in December last year directed promoter and managing director of Pyramid Saimira Theatre, PS Saminathan to make a public offer to acquire shares of PSTL from public shareholders within three months from the date of the order. However, Mr Saminathan had cited this ban for failure to make an open offer to buy the shares
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) on Monday imposed a penalty of Rs5 lakh on promoter and managing director of Pyramid Saimira Theatre (PSTL), PS Saminathan, for his failure to comply with directions issued by it, reports PTI.
SEBI had in an order in December last year directed Mr Saminathan to make a public offer through a merchant banker to acquire shares of PSTL from public shareholders by paying them the value determined by the valuer and acquire the shares within three months from the date of the order.
“... the noticee (PS Saminathan) has not complied with the said direction issued by SEBI. Moreover, it is an admitted fact that the noticee failed to comply the direction issued by SEBI vide order dated 23 December 2010,” SEBI said.
The regulator said Mr Saminathan has violated provisions related to Section 15 HB of SEBI Act which deals with failure to comply with orders issued by it.
“Considering all the facts and circumstances of the case... impose a penalty of Rs5 lakh only on the noticee viz. PS Saminathan,” SEBI said, while directing him to deposit the penalty within 45 days.
PSTL was allegedly involved in committing irregularities in its books of account and showing inflated profits and revenues in the financial statements in 2007-08.
The company and its directors allegedly lured the general public to invest in the shares of the company based on such false financial statements.
SEBI had earlier in 2009 banned Mr Saminathan from “buying, selling or dealing in securities” on account of his involvement in the incidents of 2007-08.
Mr Saminathan had, in reply to show-cause notice from SEBI, cited this ban for failure to make an open offer to buy the shares.
“... though he has been banned from dealing in securities market, he is specifically permitted/directed to make public offer to acquire the shares of PSTL from public share holders.
The direction to make the public offer overrides the ban to the extent necessary for compliance with the same and therefore, the directions are not contradictory but both were to be complied with.
“The noticee has not submitted any evidence to prove to the least that he attempted to comply with the direction either seeking any clarification or direction from SEBI to mitigate the difficulties if any, he had in complying with the direction,” SEBI said, while rejecting the argument.
Mr Saminathan was the promoter and MD of PSTL during the period when the irregularities took place and was alleged have published false and misleading financial results of PSTL.
It was also observed that company allotted convertible warrants to Mr Saminathan on preferential basis without receiving consideration thereof.
Besides, it was alleged that PSTL did not maintain proper books of accounts and did not cooperate with the investigation by failing to produce various documents and records required during investigation despite issue of several summons.
SEBI had initiated inquiry on the irregularities in November 2009 and a show-cause notice was issued against Mr Saminathan in April 2010.
A month later, Mr Saminathan sent a reply denying all the charges. Besides, he made further submission before SEBI in the following months.
PSTL claimed to have entered into lease/hire agreements with 765 theatres in various states as on 31 March 2008, and with 802 theatres as at the end of June 2008. However, during investigation it was able to show copies of only 257 such agreements to SEBI.
The market regulator also found that no money was paid by PSTL to some theatres for creation of security deposits.
Mr Saminathan was also accused of impeding proceedings on as he claimed that SEBI is not an expert body on accounts and questioning the authority of the regulator to pass comments on the accounts maintained by the company.
SEBI had in July this year imposed a fine of Rs1.1 crore on Mr Saminathan for indulging in fraudulent and unfair trade practices and violating market regulations.
In a surprise announcement on Sunday Niira Radia, owner and promoter of Vaishnavi Group which has mandate from Tata Group and Mukesh Ambani-led Reliance Industries announced her exit from the business of communication consultancy
New Delhi: The Tata Group has appointed Redifussion to manage the conglomerate’s public relations in place of the agency led by high-profile lobbyist Niira Radia who has quit the business, reports PTI.
“The Tata Group has appointed Rediffusion, led by Arun Nanda, to manage public relations and public affairs for the Tata Group of companies from 1 November 2011,” the Group said in a statement.
This follows the expiry of the contract with Niira Radia-led Vaishnavi Corporate Communications on 31 October 2011.
In a surprise announcement on Sunday Niira Radia, owner and promoter of Vaishnavi Group which has mandate from Tata Group and Mukesh Ambani-led Reliance Industries (RIL) announced her exit from the business of communication consultancy.
“To give precedence to my personal priorities of family and health, I have decided against renewing any client mandates and to exit the business of communications consultancy,” she said in a statement.
The apex court asked the additional solicitor general Haren Raval to make a statement before it on Tuesday on what basis it took decision not to oppose the bail plea of DMK MP Kanimozhi and four others in the trial court in 2G scam after the other accused in the case pleaded that the CBI should also treat them on equal footing as far as bail is concerned
New Delhi: The Supreme Court on Monday asked the Central Bureau of Investigation (CBI) to explain on what basis it took decision not to oppose the bail plea of DMK MP Kanimozhi and four others in the trial court in second generation (2G) scam, reports PTI.
A bench of justices GS Singhvi and HL Dattu asked the additional solicitor general Haren Raval to make a statement before it on Tuesday in this regard after it was pleaded by other accused in the case that the investigating agency should also treat them on equal footing as far as bail is concerned.
The court was hearing bail pleas of five corporate five corporate honchos who pleaded that they should be released as there is no chance of them tampering with the evidence.
The investigating agency, however, opposed the bail plea of corporate executives—Unitech Wireless’ MD Sanjay Chandra, Swan Telecom’s Director Vinod Goenka and Reliance Anil Dhirubhai Ambani group's executives Hari Nair, Gautam Doshi and Surrendra Pipara—who have approached the apex court for bail.
Earlier the agency on 24th October did not oppose the bail plea of Ms Kanimozhi, Kalaignar TV MD Sharad Kumar, directors of Kusegaon Fruits and Vegetables Asif Balwa, Rajiv Agarwal and Bollywood producer Karim Morani before a special CBI court here.
It had, however, opposed bail plea of Swan Telecom promoter Shahid Balwa and former telecom minister A Raja’s ex-private secretary RK Chandolia in the trial court.
Other accused in the case include Mr Raja, former telecom secretary Siddhartha Behura and three telecom firms Reliance Telecom, Swan Telecom and Unitech (Tamil Nadu) Wireless.
All the accused have pleaded that they have not done anything wrong and refuted the charge of drawing illegal benefits in allocation of 2G spectrum.
The 2G spectrum scandal involved officials in the government of India illegally undercharging mobile telephony companies for frequency allocation licenses, which they would use to create 2G subscriptions for cell phones. The spectrum scam has cost the government Rs1.76 lakh crore.