Brightcom Group shares jumped by nearly 5% for two consecutive days, bouncing back from a 12-day slump during which they lost 84% of their value.
What Happened? This drastic drop came after the Securities and Exchange Board of India (SEBI) called out and punished the company on Aug. 22. SEBI took action against the company’s top brass, including the chairman, CFO, and 22 others, accusing them of shady trading practices.
SEBI claims that Brightcom falsely reported receiving ₹868 crore between 2020-22 from four separate share and warrant issues.
Adding to the company’s woes, the Enforcement Directorate got involved, raiding Brightcom’s offices and the homes of its senior staff and auditors. Amid this storm, M. Suresh Reddy, the chairman and managing director, stepped down, and Narayana Raju, the CFO, also quit.
Price Action: Shares of the company were locked in 5% upper circuit at ₹14.50 as of 10:25 am on Monday. The stock has fallen 50.26% on a year-to-date basis.
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