Sebi slaps Rs 40 lakh fine on Brightcom Group, promoters

SEBI

Capital markets regulator Sebi on Tuesday levied fines totalling Rs 40 lakh on Brightcom Group and its promoters for flouting regulatory norms. Brightcom Group Ltd (BGL) is listed on both BSE and NSE.

The regulator slapped a fine of Rs 12 lakh on Geetha Kancharla, Rs 6 lakh each on Vijay Kumar Kancharla HUF, Vijay Kumar Kancharla, Karta of HUF and M Suresh Kumar Reddy (Chairperson and MD) and Rs 5 lakh each on S V Rajyalaxmi Reddy and Brightcom Group Ltd (BGL).

Sebi had conducted an examination in the matter of BGL to ascertain the violation of provisions of insider trading norms, if any, by certain entities while trading in the shares of the company from April 2020 to August 2021.

In its examination, the regulator found that Vijay Kumar Kancharla HUF, M Suresh Kumar Reddy, S V Rajyalaxmi Reddy and Geetha Kancharla traded in the scrip of BGL during April 2020 to August 2021.

They had to file necessary disclosures as they had breached the regulatory threshold of Rs 10 lakh on various occasions as per the Prohibition of Insider Trading (PIT) norms.

However, they failed to file the necessary disclosures under the norms and flouted the PIT regulations.