The suspension comes in accordance with market regulator Securities and Exchange Board of India (Sebi) Master Circular of July 11, 2023. The Master Circulars’ Regulation 33 governs the submission of financial results.
In a circular issued by the exchange on Tuesday, NSE stated that trading in securities of Brightcom Group will remain suspended until the company complies with the above regulation. After 15 days of suspension, trading in the securities of non-compliant companies would be allowed on a trade-for-trade basis in the Z category on the first trading day of every week for six months.
Shares of Brightcom Group fell to the intraday low of Rs 12.25, down by Rs 0.65 or 5.04%.
On May 13, Monday, the stock plunged to its 52-week low of Rs 12.20 and has corrected by nearly a third from its 52-week high of Rs 36.45 on the NSE.The counter is currently trading below its 50-day and 200-day simple moving averages (SMAs) and has been very volatile trading with a 1-year beta of 1.4 over a 1-year period. Brightcom has been in the news for many wrong reasons recently. In February, Sebi issued confirmatory orders against Brightcom Group, restraining promoter-cum-chairman and managing director Suresh Kumar Reddy from holding any directorial positions until further notice. The company was also barred from dealing with the securities market.In August last year, the capital market watchdog passed a second interim order against Reddy, Raju, Sharma, and 21 other individuals for their alleged involvement in round-tripping of the company’s funds to falsely portray receipt of proceeds through preferential allotment of shares.
In October 2022, Sebi received complaints pertaining to the funds raised by Brightcom Group through a preferential issue of shares/warrants during the FY19-21 period.
The market regulator alleged that the group raised the money through preferential issues to entities that were directly or indirectly connected to it and that the money raised was given as loans and advances to its subsidiaries.
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