The National Stock Exchange (NSE) suspended trading in Brightcom Group shares from June 14, 2024, until the company followed the Master Circular regulations.
“Trading in securities of the above-mentioned Company (Brightcom Group) would be suspended w.e.f. June 14, 2024, and the suspension will continue till such time the company complies with Master Circular,” said NSE in a circular issued on Tuesday, May 14.
According to media reports, NSE said that trading in Brightcom Group securities will be suspended until the company fulfills the regulations outlined.
After 15 days of suspension, trading in non-compliant companies’ securities would be permitted on a trade-for-trade basis. This will occur in the Z category on the first trading day of each week for six months.
Recently, Brightcom has been in the news for a lot of other wrong reasons as well.
SEBI issued confirmation orders against Brightcom Group in February, prohibiting Suresh Kumar Reddy, the promoter and chairman, from taking on any directorial roles till further notice. The company was restricted from dealing with the securities market.
Sebi also found that certain warrant and preferential share allottees had only made partial payments during its investigation.
In October 2022, Sebi received complaints about Brightcom Group’s funds raised through a preferential issue of shares/warrants during the fiscal year 2019-21.
According to media reports, it is claimed that the group raised funds through preferential issues to entities that were directly or indirectly related to it and that the funds were used to provide loans and advances to its subsidiaries.
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Last year in August, the markets regulator issued a second interim order against Reddy, Raju, Sharma, and 21 others for allegedly round-tripping company funds to falsely show proceeds from share allotments.
The capital markets regulator noted in its order that prima facie findings show Brightcom Group funded its own preferential allotments and engaged in fund round tripping remain unchanged. Furthermore, 22 entities were barred from disposing of shares of Brightcom.
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