Sebi slaps Rs 8 lakh fine on Brightcom Group for violating regulatory norms

Capital markets regulator Sebi connected Monday slapped a punishment of Rs 8 lakh connected Brightcom Group for failing to marque timely disclosures to banal exchanges.

The Securities and Exchange Board of India (Sebi) conducted an introspection successful the substance of Brightcom Group Ltd (BGL) for the alleged usurpation of provisions of LODR (Listing Obligations and Disclosure Requirements) rules. Sebi initiated proceedings against BGL successful the substance and issued amusement origin announcement connected May 31, 2024.

In its order, Sebi observed that Brightcom had not submitted its fiscal results for the quarters ending September 30, 2023, and December 31, 2023. In presumption of the same, it was alleged that the noticee (Brightcom Group) violated the provisions of disclosure rules.

Under the Sebi norms, a listed entity volition person to taxable quarterly and year-to-date standalone fiscal results to the banal speech wrong 45 days of extremity of each quarter.

Being a listed company, the noticee was nether the work to guarantee timely compliance and cannot bash distant with its responsibilities nether the pretext of resignation of assorted directors, KMPs and auditors, thereby flouting disclosure rules.

The regulator's probe besides revealed that the noticee had intimated the banal exchanges with respect to the resignation of its 3 directors with a hold of 6 days, 4 days and 1 time respectively.

Also, successful February this year, Sebi passed a confirmatory bid successful the substance of BGL. Thus, the institution was required to disclose the aforesaid to the banal exchanges, however, which it had not disclosed astatine the clip of examination.

The resignation of its KMPs and statutory auditors successful July and August, 2023 could not person immoderate bearing connected not making the disclosure with respect to the regulator's order, which was passed connected February 28, 2024.

Had the noticee acted with owed attraction and diligence, timely disclosures could person been made, it is further noted that the disclosure has inactive not been made by the noticee, arsenic connected the day of this order. Thus, the usurpation is inactive continuing.

However, determination was a hold connected portion of BGL to record the disclosures which were not made successful a timely mode and thus, cannot beryllium considered to beryllium successful compliance with the LODR rules.