SEBI Slaps Rs 40 Lakh Fine On Brightcom Group, Promoters For Flouting Rules; Co Issues Clarification

Market regulator Sebi levied fines amounting to Rs 40 lakh on Brightcom Group and its promoters for flouting rules related to trading from April 2020 to August 2021. However the company in an exchange filing on Wednesday said that the order is based on a different show-cause notice that Sebi initiated on November 23, 2022.

The company in the regulatory filing said, "The adjudication order, covering the period from April 1, 2020, to August 13, 2021, addresses specific aspects such as disclosure, code of conduct, execution of trades during the trading window closure period, and contra trade. A penalty of Rs.5 lakhs has been levied on the company and a total of Rs.35 lakhs on five associated entities following the completion of the adjudication process."

The company also added that it is consulting with its legal advisors to evaluate the order and then take the necessary steps. It further thanks the stakeholders for continued support and said that it will continue to operate with utmost diligence and commitment.

Promotes fined by SEBI

The regulator slapped a fine of Rs 12 lakh on Geetha Kancharla, Vijay Kumar Kancharla HUF, Karta of HUF and M Suresh Kumar Reddy the Chairperson and MD of the company were fined Rs 6 lakh each. Rajyalaxmi Reddy and Brightcom Group Limited were also fined Rs 5 lakh each.

The company and its promoters are required to pay the penalty within 45 days of receipt of the order through online payment facilities.

Brightcom shares

The shares of Brightcom Group on Wednesday at 1:23 pm IST were at Rs 27.30, up by 5 per cent.