file not found

I am piping sed command to an awk program but I got that error
message :
#  sed -f namestate list | bystate
ksh: bystate:  not found
#

Though bystate is a chmod 777 and contain that commands :

# cat bystate
#!/bin/sh
awk -F, '{
        print $4 ", " $0
        }' $* |
sort |
awk -F, '
$1 == LastState {
        print "\t" $2
}
$1 != LastState {
        LastState = $1
        print $1
        print "\t" $2
}'