Pyramid Saimira case: SEBI confirms ban against Keynote, others

Market regulator SEBI has confirmed the ban it has imposed on Keynote Capitals, Dynamic Stock Broking, Advance Finstock and five other persons for their role in the Pyramid Saimira Theatres share manipulation case.The regulator had in April last year prohibited Keynote Capitals from giving any trade recommendations for listed companies for "breach of professional and ethical standards, besides misleading unsuspecting investors in the securities market" in the PSTL case.Keynote, according to the SEBI order, "was alleged to have made non-genuine recommendations and the related valuation of PSTL scrip, (which) were intended to facilitate fraudulent transactions in shares of PSTL at an artificially inflated price."While rejecting the plea of Keynote, SEBI said, "It would not be appropriate to revoke the interim direction issued against the Keynote vide the Order, till further orders."SEBI also confirmed interim order against Advance Finstock and its directors Popatlal Shah, Karul Shah, Anand Hundia, Rajesh Hundia and Sanjay Hundia, who were prima facie found to have carried out suspicious banking transactions and channeled funds into the stock markets.SEBI in its April 2009 order had banned the entities connected with Advance Finstock from dealing in securities market and initial public offerings (IPOs) till further directions.The regulator did the same in the case of Dynamic Stock Broking which had been banned from entering into fresh agreements with new clients till further orders.The broking firm was penalised for violating the code of conduct for stock brokers prescribed by the SEBI.In an interim order in the PSTL case in April 2009, SEBI had banned over 220 persons and entities, from trading in securities.The case pertains to manipulation of Pyramid Saimira Theatres Limited (PSTL) shares by promoter P Saminathan with assistance from different market intermediaries to amass unlawful gains.Saminathan is also alleged to have forged a SEBI letter that reportedly allowed PSTL to make an open offer for an additional 20% stake in the company.