The scrip of Pyramid Saimira Theatre (PSTL) soared 20 per cent on the Bombay Stock Exchange (BSE) on Friday after the Securities and Exchange Board of India (Sebi) on Thursday directed post market hours its promoter PS Saminathan to give an open offer to acquire shares of PSTL from public shareholders. The stock closed at Rs 7.46 on Friday,which is also its days high. The total traded volumes jumped 236 per cent as 1.11 lakh shares changed hands on the Bombay Stock Exchange as compared to its two-week average traded volume of just 33,000 shares. Apart from imposing ban on Saminathan from dealing in the capital market for 10 years,the regulator had asked the companys promoter to give an open offer to its shareholders by paying them the value determined under the Sebi delisting norms with in a period of three months. The regulator had also asked the Bombay Stock Exchange to facilitate valuations of shares to be purchased and compulsory delist the company,if the public shareholding falls below the minimum threshold level subsequent to the purchase. Sebi decision comes after the company was found to have inflated its profits and revenues by fictitious entries in its accounts and disclosing the same in the quarterly and annual results for the financial year 2007-08,which misled the public in their investment decision. Pyramid Saimira Theatre is also accused of alloting warrants to Saminathan on a preferential basis and subsequently allotting equity shares on conversion of such warrants without a monetary consideration towards the issue of such warrants and shares. The fictitious entries in the books of accounts with a view to paint a rosy picture about the financial health of the company mislead the investing public and constitute worst kind of fraud on the part of the company,management and promoters, the Sebi order stated. The Securities and Exchange Board of India had ordered the company to delist if public shareholding fell below the minimum limit. It also directed the Bombay Stock Exchange to facilitate valuation of shares to be purchased as per the above Securities and Exchange Board of India regulations and compulsorily delist the company,if the public shareholding reduces below the minimum level in view of aforesaid purchase.
