Sebi Settles with Brightcom Group Executives Over Regulatory Lapses

Two former officials of Brightcom Group Ltd settled regulatory violation cases with Sebi, agreeing not to associate with the company for specified periods. They were accused of failing to disclose critical audit procedures and inaccurate financial disclosures. The settlement concludes proceedings from an investigation covering 2014-2020.

On Tuesday, two former executives from Brightcom Group Ltd (BGL) settled cases involving regulatory infractions with India's markets regulator, Sebi, after each paid a settlement amount of Rs 12.35 lakh.

As per the settlement terms, M Manohar is prohibited from associating with Brightcom Group or its subsidiaries for one year, while Vijaya Bhasker Reddy has agreed to a two-year non-association period. Sebi had alleged in its show cause notice that Manohar, the compliance officer at the time, did not disclose a forensic audit and misrepresented the company's shareholding pattern to stock exchanges. Reddy, acting as a non-executive independent director, was charged with failing to ensure the financial statements adhered to accounting standards.

The allegations, detailed in a show-cause notice issued in September 2024, arose from Sebi's investigation into company affairs for the financial years 2014-15 to 2019-20. This probe was prompted by complaints received between October 2020 and March 2021, claiming inaccuracies in Brightcom's financial reports. As the proceedings were ongoing, both executives submitted settlement proposals under Sebi's norms to conclude the matter without admitting or denying the allegations. With the settlements accepted, Sebi officially concluded the case against them.

(With inputs from agencies.)