Market regulator Securities and Exchange Board of India (Sebi) today banned Pyramid Saimira Theatre (PSTL) from dealing in stock markets for seven years after it found that the company colluded with seven persons to corner the portion reserved for employees in its initial public offer in 2006.
"PSTL is restrained from dealing in securities in any manner whatsoever or accessing the securities market, directly or indirectly, for a period of seven years," Sebi said in a statement.
However, the company, when contacted, said it would file an appeal against the Sebi order.
"The order is arbitrary without any basis and it is ridiculous. We will appeal against the order, when we receive a communication from them," PSTL Managing Director P S Saminathan told PTI.
Earlier in June, Sebi had banned five persons for three years from dealing in equities for cornering almost all the shares meant for PSTL employees.
"PSTL aided and abetted the seven persons to corner shares of PSTL under the employee category to the detriment of the common investors," the regulator noted in its order.
As per Sebi investigations, seven persons had cornered 98.5 per cent of 4,22,200 shares in the "employee category" in collusion with the company during the initial public offer of PSTL which hit the market in December 2006.
