Sebi’s confirmatory order against Brightcom Group bars CMD from holding directorial role
Sebi) on Wednesday 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 is also barred from dealing with the securities market until further orders.
The regulator has, however, modified its directive against chief financial officer Narayan Raju by restraining him from holding the position of a director or a key managerial person only in Brightcom Group and its subsidiaries.
Further, the regulator has revoked the order against market veteran Shankar Sharma that prohibited him from disposing of shares of the company.
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.
“What comes out very clearly is the fact that explanations provided by noticees have convinced SEBI to ask even more questions on the way BGL (Brightcom Group) was run and the manner in which it was operating as per the whims and fancies of an individual, i.e. Mr. Suresh Kumar Reddy,” Sebi said in its confirmatory order.
It is apparent that the company had loose internal financial controls and its CMD was running the company as a private concern.
“The CMD treated BGL as his private enterprise, disregarding the large number of public shareholders and their interests. There
