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Brightcom Group, CMD, CFO siphoned off proceeds of preferential allotments: SEBI order

Brightcom Group, CMD, CFO siphoned off proceeds of preferential allotments: SEBI order
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Brightcom Group – Set to Become a Case Study of Fraud & Manipulation

The unprecedented second interim order of the market regulator against the Brightcom Group Ltd (Brightcom) on 22nd August had no surprises for discerning investors, analysts or commentators. It is a bit like Byju’s—everybody had seen it coming for over a year.

Brightcom Group, CMD, CFO siphoned off proceeds of preferential allotments: SEBI order

Brightcom Group Ltd, M. Suresh Kumar Reddy (BGL's promoter-cum CMD), and Narayan Raju (CFO) were involved in round-tripping of BGL's own funds in a circular fashion to falsely portray receipt of consideration from allottees of preferential .

2 Brightcom officials barred from holding managerial posts till further order

Sebi on Tuesday restrained two Brightcom Group officials, M Suresh Kumar Reddy and Narayan Raju, from holding any managerial position in the company or its subsidiaries until further orders. Reddy is the promoter-cum-chairman and MD of Brightcom Group Ltd (BGL) while Raju is the chief financial officer. Besides, the regulator also banned Reddy from the securities market until further orders.

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