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In a circular dated May 14, the National Stock Exchange (NSE) announced that it will suspend trading in Brightcom Group shares starting June 14. This suspension will remain in effect until the company complies with the Master Circular requirements.
The circular stated, “After 15 days of suspension, trading in the securities of the non-compliant company will be permitted on a Trade for Trade basis in the Z category on the first trading day of every week for six months.”
On May 15, Brightcom shares hit the lower circuit at 11 am, trading at Rs 12.25 each.
NSE explained that Brightcom Group failed to meet the requirements of Regulation 33, which mandates the submission of financial results under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, for two consecutive quarters ending on September 30, 2023, and December 31, 2023. As a result, trading in Brightcom Group securities will be suspended from June 14, 2024.
In February, the Securities and Exchange Board of India (Sebi) upheld market restrictions on Suresh Kumar Reddy, promoter of Brightcom Group, due to irregularities in the preferential allotments of shares by the company. Sebi’s confirmatory order also barred him from serving as a director or Key Managerial Personnel in any listed company or its subsidiaries.
Sebi’s investigation revealed that Brightcom Group funded its own preferential allotments and engaged in round-tripping of funds. Additionally, 22 entities were prohibited from selling Brightcom Group shares held by them.
