Sebi on Wednesday lifted restrictions imposed on Viral Doshi, who was barred from the capital market for her involvement in the case related to fraudulent trading activities of Pyramid Saimira Theatre.
Doshi, wife of Pyramid Saimira's former promoter Nirmal Kotecha and the main accused in the case, was prohibited by Sebi from the capital market through an interim order issued in April 2009. At that time, she was found to have aided and abetted her husband in his “nefarious” activities by allowing him to use her bank account.
While noting that Doshi had aided and abetted her husband in carrying out the fraudulent activities, Sebi in an order on Wednesday said she has "already undergone a debarment from the securities market for four years and 11 months pursuant to ad-interim order dated April 23, 2009".
"Considering the period of restraint or prohibition already undergone by the noticee...no further period of restraint or prohibition is required in the instant case," the Securities and Exchange Board of India (Sebi) said. "...hereby hold that the directions vis-a vis Viral Doshi contained in ad-interim order dated April 23, 2009, need no longer be continued," it added.
The matter relates to one of the biggest cases of insider trading and fraudulent trade wherein a former promoter Nirmal Kotecha sold a huge number of shares of Pyramid Saimira Theatres in December 2008 after dissemination of false information in media, based on a forged Sebi letter asking promoter PS Saminathan to make an open offer.
The forged Sebi letter was alleged to have been planned and executed by Kotecha himself and persons working with him.
A Sebi probe had found that Doshi had allowed Kotecha to use her bank account for his fraudulent funding activities.
The regulator found that Kotecha and entities associated with him, including his friends and relatives, made significant undue profit from the publication of forged letter and the consequent trading activities, which enabled them to offload substantial holdings in shares of Pyramid Saimira.