Pyramid Saimira scam: Sebi settles case with Keynote Capitals

Markets regulator Sebi has settled with Keynote Capitals Ltd a case related to alleged execution of sham deal in the scrip of Pyramid Saimira Theatres Ltd (PSTL) for Rs 5 lakh in settlement fee.

It was alleged that Keynote Capitals, a stock broker, executed a sham deal and allowed its two clients (both promoters of PSTL -- P S Saminathan and Nirmal Kotecha) to execute dubious cross deals in the scrip of PSTL.

Besides, the broker had allegedly accepted third party cheque towards brokerage and did not settle the alleged cross deal on T+2 basis in violations with Sebi's norms.

In an order passed on February 16, Sebi said it is disposing of "the...adjudication proceedings pending in respect of the applicant (Keynote Capitals)".

The Securities and Exchange Board of India (Sebi) had initiated adjudication proceedings against the entity over the violation of regulations.

While proceeding against the entity was in progress, it had offered to settle the matter upon payment of Rs 5 lakh towards settlement terms.

Thereafter, Sebi's High Powered Advisory Committee recommended the cases for settlement on the payment of the amount. This was also approved by Sebi's panel of whole-time members, following which Keynote Capitals remitted the sum in January this year.

Sebi said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by the stock broker is found to be untrue.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)