Brightcom Group gets ₹8 Lakh fine from SEBI

24 Sep 2024 , 02:54 PM

Brightcom Group was fined ₹8 lakh by capital markets regulator Sebi on Monday for failing to disclose information to stock exchanges on time.

The Securities and Exchange Board of India (Sebi) examined Brightcom Group Ltd (BGL) for potential violations of LODR (Listing Obligations and Disclosure Requirements) laws. The Sebi commenced proceedings against BGL and issued a show cause notice on May 31, 2024.

In its order, Sebi noted that Brightcom had not presented financial data for the periods ending September 30, 2023, and December 31, 2023. In light of this, it was argued that the noticee (Brightcom Group) breached the disclosure rules.

Under Sebi regulations, a listed business must submit quarterly and year-to-date standalone financial results to the stock market within 45 days of the end of each quarter.

As a listed business, the noticee was required to ensure prompt compliance and could not abdicate its responsibilities under the guise of the resignation of multiple directors, KMPs, and auditors, thereby violating disclosure laws.

The regulator’s assessment also discovered that the noticee notified the stock exchanges of the resignation of its three directors with a six-day, four-day, and one-day delay.

Also, in February of this year, Sebi issued a confirming order in the BGL case. Thus, the corporation was compelled to report the information to the stock markets, which it did not do at the time of the investigation

The resignation of its KMPs and statutory auditors in July and August 2023 had no influence on the failure to provide the statement required by the regulator’s order, which was issued on February 28, 2024.

If the noticee had acted with reasonable care and attention, timely disclosures could have been made; nevertheless, as of the date of this judgement, the noticee has yet to make the disclosure. Thus, the breach is still ongoing.

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