More investors seek reversal of Pyramid trades

Retail investor activism is gathering pace in the Pyramid Saimira forged letter case. A number of small investors have contacted DNA asking for trades on the two days to be cancelled after the paper reported on a public interest litigation being filed by Supreme Court lawyer M L Sharma asking for cancellation of trades that happened on December 22 and 23.

Sebi is also said to have been exploring remedies for the Pyramid Saimira debacle through the realm of PIL.

Sharma told DNA on Friday: “A Sebi counsel in Delhi has contacted me and got a copy of the petition. They are exploring the legal issues. I am representing all investors who were duped by the letter. And Sebi is looking into the options.”

Sharma added more small investors joining him will make the case stronger. Ravi Raheja, a Mumbai-based small investor, who bought 400 Pyramid Saimira shares is joining the campaign.

He said “Us din ka sauda cancel karna chahiye (those trades must be cancelled). Even I had written to Sebi but they did not reply. There is some hope after this PIL”
Raheja says his Rs 32,000 is locked in the shares and any exit will be at a huge loss. The stock has been hitting lower circuit and is now at Rs 28.95, after initially touching around Rs 80 on December 22.

“Sebi ka naam bada hai, darshan chhota hai. Why can’t they just reverse the trades?”

Vishnu Agarwal, another retail investor, who has bought 500 Pyramid shares said that in addition to Sebi, he had written to the Bombay Stock Exchange and to Pyramid Saimira asking for reversal of trades which have happened by means of fraudulent inducement.

“While BSE has replied that it can’t do anything without Sebi’s orders, the company people are not even answering the phone,” Agarwal said. Many more small investors are hit and the trades should be cancelled like in the Nissan Copper case, he said.

“Big money is involved. But Sebi should teach them a lesson in the interest of investors,” Agarwal said.

DNA on January 15 had reported that New Delhi-based advocate Manohar Lal Sharma has filed a public interest litigation asking the Supreme Court to direct market regulator Sebi and NSE to cancel the transactions in Pyramid Saimira on the two days. The case is likely to come up for hearing before chief justice KG Balakrishnan Monday or Tuesday next.

Sharma’s petition also points fingers at Nirmal Kotecha, who had sold over 17 lakh shares when the Sebi forged letters scam surfaced.

The petition says, “It is pertinent to mention that the company’s other promoter Nirmal Kotecha has done heavy dealing in the said shares.” Sharma, who was in Mumbai on Wednesday, told DNA it’s clear that some people forged letter to take advantage of it.

“When the order publicly available says the share will go up, everyone will rush to buy. Who will be the one going against the order? It is most likely a criminal.”

Sharma said Sebi should cancel all transactions following the publication of the fake letter and investors who were duped must be returned their monies.