After finding Brightcom Group Ltd (BGL), its promoter, chairman and managing director (CMD) M Suresh Kumar Reddy and chief financial officer (CFO) Narayan Raju were involved in round-tripping of BGL s own funds in a circular fashion to falsely portray receipt of consideration from allottees of preferential allotments and siphoning off of proceeds of preferential allotments, Securities and Exchange Board of India (SEBI) barred top executives of the company as well as investor Shankar Sharma from offloading or disposing of their shareholding in the company.
The unprecedented second interim order of the market regulator against the Brightcom Group Ltd (Brightcom) on 22nd August had no surprises for discerning investors, analysts or commentators. It is a bit like Byju’s—everybody had seen it coming for over a year.
Market regulator Securities and Exchange Board of India (SEBI) has imposed fines totalling Rs40 lakh on six, including Brightcom Group Ltd (BGL) and its promoters, for failing to follow regulatory norms on insider trading.