Brightcom’s board has accepted the resignations of its chairman & managing director (CMD) Suresh Reddy and its chief financial officer (CFO) Narayana Raju, according to a regulatory filing on Sunday. The company has also proposed a transition leadership team to oversee the leadership transition process.
In the past one month, Brightcom’s shares have fallen about 21 per cent. The shares stood at Rs 25.05 apiece on the BSE on July 31.
The board also approves the commencement of a search for a CEO and an
CFO to ensure the smooth continuation of essential operations.
Brightcom’s board acknowledged the need for regulatory compliance. It said steps will be taken to engage with relevant regulatory bodies and ensure compliance with all applicable regulations during this transition period.
Last week, Sebi restrained M Suresh Kumar Reddy and Narayan Raju, from holding any managerial position in the company or its subsidiaries until further orders. Besides, the regulator also banned Reddy from the securities market until further orders.
“It is perhaps for the first time that Sebi is resorting to issuing a second interim order for the same entity. This has been done with much thought and deliberation, considering the scale and gravity of manipulation,” Sebi’s whole-time member Ashwani Bhatia said in the order.
In its latest order, Sebi said prima facie observations and findings clearly show the manipulations carried out by BGL and other noticees, in respect of the company’s preferential allotments, which involve fictitious receipts of share application money from allottees and siphoning of funds from BGL.
However, BGL has brazenly attempted to cover up its misdeeds by submitting forged and fabricated bank statements to the regulator.
Subsequently, Brightcom Group had said it had set up an internal team to review its options after the market regulator found “manipulations” in its preferential share allotment and barred two top executives from director posts.
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