With all the makings of a soap opera Chennai-based entertainment and theater company Pyramid Saimira Theatre has accused vested interests of manipulation and hammering down its share price.

The company said the letter that it had received from the regulator Securities Exchange Board of India (SEBI), regarding its open offer, has been forged (See: SEBI forces Pyramid Saimara to make open offer at Rs250 per share) 

The company had requested the Bombay Stock Exchange and National Stock Exchange not to issue payouts but conduct a thorough inquiry into the share transactions of its stocks on Monday. The company is also planning to launch a formal complaint with Central Bureau of Investigation (CBI) in this regard.

Pyramid Saimira alleged that competitors and big business interests were behind the constant hammering of its share price and also "creating panic among the investors with an ulterior motive".    

Chronology of events:

Sunday, Dec 21: Newspaper reports quote the Pyramid Saimira company secretary as admitting he had received SEBI's letter on Saturday. Company secretary denies reports
Monday, Dec 22: In response to reports, firm tells BSE / NSE that no order had been received from SEBI until Monday morning. 'Note' delivered thereafter.
Tuesday, Dec 23: SEBI confirms that it had not issued any such letter. Pyramid Saimira  CMD claims manipulation of stock and selective leaks of forged note.
 
Narrating the sequence of events, Pyramid Saimira Group said in a press release:

"a) There has been news paper reports stating that the company had received an Order from SEBI on the Open Offer. The company checked the website of SEBI and found no such order. On Sunday- 21 December 2008, further news paper reports quoted the Company Secretary of the company stating that he has received the letter. But on enquiry we found out that the Company Secretary did not speak to any Press in this manner.

"b) When such an order issued has been widely reported in media and since the company or its promoter Mr P S Saminathan has not received any such letter till Monday - 22 December 2008 morn­ing, the company informed BSE / NSE that no such order has been received from SEBI.

"c) Subsequently, we received said order and started consulting with our counsels. Since the company has properly filed all the declarations on 10 October 2008 no such order is called for.

"d) We also checked as to how the press could get the Order copy on Saturday 20 December itself and why it was delivered to our office on Monday the 22 December 2008.

"e) We found out subsequently that the courier company (Blue Dart Couriers) has been instructed NOT to deliver the letter on Saturday to us and deliver it ONLY on Monday - 22 December 2008. Pyra­mid Saimira showed the e-mail confirmations of the Courier and exact delivery instructions to substan­tiate the same.

"f) On 23 December 2008 morning, our Company Secretary has received a call from SEBI and has mailed to SEBI the copy of order received from SEBI for its confirmation. (Pyramid Saimira showed the e-mail that was sent to SEBI on this).

"g) SEBI confirmed back to the company that they have not issued any such letter."

Therefore, Pyramid Saimira alleges that deliberately the said letter was given to the Press earlier and deliberately the company was denied the copy so that it will not be in a position to react at the right time.

Once the company came to know of the press note, it immediately issued a clarification to BSE / NSE that it had not received any such letter. In spite of that, there has been a massive 75-lakh share trade and 25-lakh share delivery, which is completely abnormal.

The share price of the company has been consistently falling and has hit the lower circuit of the stock exchange.