Three individuals settle case with SEBI in Brightcom Group Limited case

Three individuals settle case with SEBI in Brightcom Group Limited

Securities and Exchange Board of India (SEBI) has approved the settlement application of three individuals in the matter of Brightcom Group Limited (BGL). These individuals include Dr Jayalakshmi Kumari - former member of the audit committee, K Anusha and V Sri Lakshmi former compliance officers.

As per the settlement order, being a member of audit committee during the investigation period, Jayalakshmi Kumari failed to ensure that BGL’s published financial statements were in accordance with applicable accounting standards and presented a true and fair view of the company’s affairs.

Jayalakshmi Kumari settled for an amount of Rs 12.35 lakh. SEBI also directed her not to associate with BGL and its affiliates in any capacity for a period of two years, including employment, consultancy, or any other professional or business relationship.

K Anusha settled for Rs 10.73 lakh. As per the SEBI settlement order, Anusha failed to ensure that correct disclosure of quarterly shareholding pattern was made to the stock exchanges during her tenure as compliance officer. As per the settlement terms it has been advised not to associate with BGL and its associates for a period of one year in any capacity.

SEBI alleged that V Sri Lakshmi issued a false and misleading press release on April 10, 2018 with respect to appointment of internal auditor. Further, she failed to ensure that correct disclosure of quarterly shareholding pattern was made to the stock exchanges during her tenure as compliance officer. Sri Lakshmi settled the matter with SEBI and paid Rs 12.35 lakh.  And asked not to associate with BGL and its affiliate in any capacity for a period of two years, including employment, consultancy, or any other professional or business relationship.

SEBI had received certain complaints during the period October 2020 to March 2021 against BGL. Which alleged misstatements and irregularities in the Financial Statements of BGL. SEBI initiated an investigation into the affairs of the BGL for the period covering financial years (FYs) from 2014-15 to 2019-20 to ascertain possible violations of provisions of SEBI Act,1992 and regulations. After conclusion of the investigation SEBI had issued show cause notice to the above three individuals.

Under settlement mechanism, the case is settled without admitting or denying the guilt.

In February this year SEBI had imposed a penalty of Rs 34 crore on BGL, promoters and others. SEBI had imposed a penalty of Rs 15 crore on M Suresh Kumar Reddy, who was Chairman and Managing Director of the company and Vijay Kancharla, whole time director of the company and promoter. BGL and two other CFOs were fined Rs 4 crore.

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