SEBI has issued a final order against the Brightcom Group, imposing a ban on five entities, including the company, from accessing the securities market. The former chairman and managing director, M Suresh Kumar Reddy, and whole-time director Vijay Kancharla, who are promoters, have been barred for five years and fined ₹15 crore each.
In addition, the company has been instructed to submit a statement detailing the impact of all non-compliances during the investigation period. The regulator highlighted the lack of cooperation from the company, resulting in the inability to calculate the actual illegal gains.
The interim order issued by SEBI alleged misstatements and accounting irregularities in Brightcom Group’s financial statements for the financial years 2014-15 to 2019-20. These irregularities were part of a scheme to defraud investors, allowing the promoters to sell their shares at inflated prices.
The misrepresented financial statements and disclosure violations prevented investors from making a true and timely assessment of the company’s financial position. As a result, SEBI deemed it necessary to implement stringent remedial and penal actions due to the long duration of the misstatements, the lack of cooperation in the investigation, and the various violations committed by the involved parties.
This article was published on February 6, 2025.
