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SEBI Court Rejects Nirmal Kotecha Plea in Pyramid Saimira Case
M
Moneycontrol•07-10-2026, 11:30
SEBI Court Rejects Nirmal Kotecha Plea in Pyramid Saimira Case
- •A special SEBI court in Mumbai rejected stock trader Nirmal Kumar Kotecha plea to settle the Pyramid Saimira stock manipulation case through a compounding fee.
- •Judge R M Jadhav noted that the alleged offenses were serious, affected investors at large, and involved the forgery of a SEBI letter.
- •Although SEBI had previously agreed to compound the case against Kotecha for around Rs 1.52 crore, the court maintained that the final decision rests with the judiciary.
- •The court cited the Supreme Court ruling in the Prakash Gupta versus SEBI case, stating that offenses of a public character should not be compounded even if restitution occurs.
Key Questions Answered
The special court rejected Nirmal Kotecha's plea because the alleged stock manipulation and forgery offences were serious, had a public character, and affected investors at large.
SEBI had consented to compounding the case against Kotecha upon payment of roughly Rs 1.52 crore, which included legal costs.
The court cited the Supreme Court ruling in the Prakash Gupta Vs SEBI case, which established that offences of a public character affecting others should not be compounded even if restitution has occurred.
