Pyramid Saimira: Sebi orders attachment of promoter’s bank accounts

After acquiring special powers from the government recently to attach properties
 and assets of defaulters in the capital market, this is Sebi’s first major move. 

Anirudh Laskar  Mint Fri, Oct 11 2013. 11 06 PM IST

The market regulator ordered the attachment in order to recover an amount of Rs1.27 cr

Mumbai: The Securities and Exchange Board of India, or Sebi, on Friday ordered the attachment of bank accounts of P.S. Saminathan, promoter of Pyramid Saimira Theatre Ltd, in order to recover an amount of Rs1.275 crore.

After acquiring special powers from the government recently to attach properties and assets of defaulters in the capital market, this is Sebi’s first major move.

 In December 2010, the market regulator had barred Saminathan from accessing the securities market for 10 years and directed him to launch a public offer for de-listing of his company.

Sebi had found Saminathan guilty of inflating profit and revenue by making fictitious entries, false corporate announcements and making preferential issue of share warrants to promoters without receiving any money in return