Brightcom Group files fresh application seeking stay on Sebi order

livemint.com:

MUMBAI : Brightcom Group Ltd has filed a fresh application before the Securities Appellate Tribunal seeking a stay on the market regulator’s order restraining ace investor Shankar Sharma and others from selling shares in the digital marketing company. The Securities and Exchange Board of India had in August restrained Brightcom’s then chairman and managing director Suresh Kumar Reddy and chief financial officer Narayan Raju from holding directorial positions following an investigation into alleged irregularities in preferential allotment of shares. Brightcom in its petition said the allegations made in Sebi’s order were “baseless and completely unfounded".

The company added that its turnover was expected to substantially deteriorate in the September and December quarters as a result of Sebi’s actions. “Because of the ouster of Mr Reddy (former chairman and managing director), the company has been subjected to serious problems including the problem of its very existence," the company said in its 187-page application to SAT. Mint has seen a copy of the petition.

SAT will hear the matter on 2 January, said a counsel aware of the developments. Brightcom Group had first approached the appeals court on 11 December challenging the market regulator’s order. Justice Tarun Agarwala, presiding officer of SAT, refused to grant interim relief to the company after hearing an appeal earlier last week.

“We have been informed that the appellants filed an application for settlement which is pending consideration. In view of the aforesaid, we are not inclined to consider the stay application at this state," the order said last week. The tribunal also asked Sebi to file its reply within three weeks and posted this matter for final disposal