Brightcom Group shares plunged after the company unveiled significant leadership shifts in response to the Securities and Exchange Board of India’s (SEBI) regulatory actions.
What Happened? The company’s board confirmed the departures of Suresh Reddy, the former chairman & managing director, and Narayana Raju, the outgoing chief financial officer. To ensure a smooth transition, Brightcom is setting up an interim leadership team and has started the hunt for a new CEO and CFO.
These changes follow closely on the heels of SEBI’s decision to suspend the company’s top executives.
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On August 22, SEBI issued an interim order, based on findings of accounting discrepancies and financial misrepresentations by Brightcom. The regulator discovered that Brightcom had falsified bank statements related to its share preferential allotment. As a result, SEBI prohibited Sharma and 22 other related entities from trading Brightcom Group’s shares.
Notably, this isn’t the first time SEBI has taken action against Brightcom. Earlier, on April 13, SEBI had released an interim order targeting the company and its then-Chairman and Managing Director, Suresh Reddy, over similar allegations.
This recent order marks a rare instance of SEBI issuing two interim orders against the same company for the same reasons.
Price Action: Brightcom Group shares were down 5.04% at ₹19.80 on early Monday, shortly after markets opened for trading.
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