Sebi Slaps Penalties on Brightcom Group Ltd for Financial Misrepresentation

Markets regulator Sebi has imposed fines totaling Rs 34 crore on Brightcom Group Ltd, its promoters, and others for financial statement misrepresentation. Promoters M Suresh Kumar Reddy and Vijay Kancharla were fined Rs 15 crore each. The violations spanned from 2014-15 to 2019-20, leading to significant profit inflation and share offloading.

The Markets regulator Securities and Exchange Board of India (Sebi) has levied hefty fines totaling Rs 34 crore on Brightcom Group Ltd (BGL), its key promoters, and associates for allegedly misrepresenting the company's financial statements over several fiscal years.

Prominent penalties include Rs 15 crore each on M Suresh Kumar Reddy and Vijay Kancharla, key promoters of the company. In addition to the financial penalties, Sebi has barred these individuals from participating in securities markets for five years and from serving as directors or key managerial personnel in listed firms for the same duration.

Accounting irregularities reportedly allowed the promoter group to inflate profits by Rs 1,280.06 crore during FY19 and FY20, enabling them to offload shares significantly between 2014 and 2022. Sebi's stringent actions reflect its resolve to crack down on fraudulent financial activities within corporate entities.

(With inputs from agencies.)