SEBI bars Brightcom’s top officials from holding directorial posts; here’s why

Capital markets regulator Securities and Exchange Board of India said in an interim order on Tuesday, August 22, that it has found lapses in Brightcom Group Limited preferential issue of shares. SEBI has barred Suresh Kumar Reddy - the promoter-cum-chairman and managing director of Brightcom Group, along with chief financial officer Narayan Raju from holding directorial posts until further notice. ‘’The prima facie observations and findings, clearly show the manipulations carried out by BGL and other noticees, in respect of BGL's preferential allotments, which inter alia involve fictitious receipts of share application money from allottees and siphoning of funds from BGL,'' said SEBI in its order. The regulator imposed a fine of ₹12 lakh on Geetha Kancharla, ₹6 lakh each on Vijay Kumar Kancharla HUF, Vijay Kumar Kancharla, Karta of HUF and M Suresh Kumar Reddy and ₹5 lakh each on S V Rajyalaxmi Reddy and Brightcom Group Ltd. SEBI had conducted an examination in the matter of the media company to ascertain the violation of provisions of insider trading norms, if any, by certain entities while trading in the shares of the company from April 2020 to August 2021.