Former director of Pyramid Saimira Theatre (PSTL), N Venkataraman, was exonerated by Securities and Exchange Board of India (Sebi). He is being pardoned on the claim that he was not a broad member when financial irregularities took place at the firm.
Further, defining the tenure of Venkataraman, Sebi clarified that he was appointed as a non-executive independent director on the board of PSTL on June 30, 2008; and resigned on February 24, 2009. Sebi additionally justified that the exoneration was announced after investigating the company's affair that suggested some manipulation in accounts was done during 2007-08, however, before Venkataraman appointed as a director in PSTL.
An order of the Securities and Exchange Board of India (Sebi) said, "The notice (Venkataraman) was not a director of the company during the relevant year, i.e., 2007-08. The notice was not a member of the audit committee of PSTL at any time during his tenure."
The whole investigation came into place after that Pyramid Saimira Theatre (PSTL) was suspected to increase its revenue and profits by fictitious entries in its accounts, last year by Sebi. As a consequence, PSTL MD PS Saminathan was barred from trading in stocks market for 10 years.
Further, following the investigation, Sebi went ahead in barring PSTL Chairman and whole-time Director V Natarajan and whole-time Director N Narayanan from trading in securities or from holding similar positions in any listed company for up to three years, after they were suspected to have participated in the irregularities.
Sebi, following the submission made by Venkataraman last December, issued show cause notice to him in April this year.