Capital markets regulator Securities and Exchange Board of India (SEBI) said in an interim order on Tuesday, August 22, that it has found lapses in Brightcom Group‘s 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.
SEBI said that it found “manipulations” carried out by Brightcom in its preferential allotments, and restrained Reddy from buying, selling or dealing in securities. In the investigations, it was also found that the considerations received were minute against the shares allotted. A total of 82 entities have been allotted preferential shares.
The regulator noted that Brightcom claimed to have advanced loans to the tune of ₹824 crore to its subsidiaries but it only transferred ₹350.75 crore and the remaining amount appeared to have siphoned off.
The Hyderabad-based company was embroiled in various disputes with the market regulator in the past, including concerns over overstating profits in its financial documents.
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Updated: 22 Aug 2023, 08:38 PM IST