Brightcom leadership exit: MD Suresh Reddy, CFO Narayana Raju step down from post; Shares plunge 5%, hit lower circuit

livemint.com:

leadership role, Brightcom Group's Chairman and Managing Director Suresh Reddy and CFO Naryana Raju have resigned from their post, said the company in its stock filing on Sunday. The decision was approved at the Board of Directors meeting of the company held on Sunday. Other than accepting the resignation, the board has also approved the search for an CEO and an CFO to ensure the smooth continuation of essential operations.

“Received and acknowledged resignation letters from Mr. Suresh Reddy, who was serving as the Chairman & Managing Director (CMD) of the company. Received and acknowledged resignation letters from Mr.

Narayana Raju, who held the position of Chief Financial Officer (CFO) of the company," the company said in its stock exchange filing. After the news, company shares plunged by 5% in the stock market. At 10:12 am, Brightcom shares were trading 4.96% lower at ₹19.72 per share on BSE on Monday.

The decision has come after the capital markets regulator Securities and Exchange Board of India (SEBI), in its interim order, found lapses in Brightcom Group Limited (BGL) preferential issue of shares. Moreover, SEBI had also barred Suresh Kumar Reddy, the promoter-cum-chairman and MD of the company, along with CFO Naryan Raju from continuing their position until further notice. To appoint new leaders, a transition leadership team has been proposed by the board.

It has also approved the commencement of a search for a new CEO and CFO for the company. The company also hinted that it will also prepare and issue a detailed press release about the departure of Reddy and Raju in accordance with SEBI's interim order. The two former company leaders are barred from holding any directorial or key managerial positions at any