MUMBAI: Securities and Exchange Board of India (Sebi) has decided not to withdraw the ban order against Chennai-based Pyramid Saimira Theatre Ltd (PSTL) MD PS Saminathan.

Sebi had imposed interim direction on Saminathan and other promoter Nirmal N Kotecha in April last year and had barred both from trading in securities till further notice. The regulator alleged PSTL for misconduct, forging a Sebi letter and of making misleading public announcements.

Shortly thereafter, Saminathan had requested Sebi to withdraw interim directions. However, in its order on Monday, Sebi turned it down saying that it did not find Saminathan‘s explanation convincing.

Saminathan explained that he had bought shares only for the purpose of raising money for PSTL. The Sebi also questioned Saminathan‘s announcement to the stock exchanges that he proposed to acquire 704.5 million shares of PSTL from promoters at Rs 200 a share. Sebi rejected Saminathan‘s submissions defending his actions “without merit”.

In November last year the regulator banned PSTL for seven years from the market.