SEBI on Thursday slapped penalties totalling Rs 34 crore on Brightcom Group, its promoters and others for misrepresenting financial statements and not complying with the regulator’s orders.
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Besides slapping penalties of Rs 15 crore each on promoters M Suresh Kumar Reddy and Vijay Kancharla, SEBI also barred them from the securities markets for five years and restrained them from acting as a director or key managerial personnel in a listed company or a SEBI-registered intermediary for five years.
The order pointed out various violations in accounting standard in the company’s books which had impacted its profit and loss and other incidental violations for FY20. Various disclosure norms were also violated as a part of the scheme to defraud investors which enabled promoters to offload their shares at elevated prices, the order said.
Trading in the shares of Brightcom Group has been suspended since June 14. The stock currently trades only in the trade-for-trade segment, where trading takes place on the first trading day of the week.
The regulator, in its final order, said the penalty imposed on them shall be paid within 45 days from the date of receipt of this order. In case of any failure to do so, a simple interest at the rate of 12% per annum shall be applicable.
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The company is also required to disseminate the standalone financial statements of each of its subsidiaries on its website for the period between FY15 and FY22 within 15 days from the date of this order.
SEBI shall determine the quantum of illegal gains/ benefit made by way of the fraudulent scheme as established in this order and action may be initiated in accordance with law, the order said.
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