Brightcom Group's Trading To Be Halted By BSE And NSE From June 14
In two separate circulars, the exchanges said Brightcom Group has not complied with Regulation 33 of SEBI's (Listing Obligations and Disclosure Requirements) norms that deals with submission of financial results for two consecutive quarters, i.e. Sept. 30, 2023 and Dec. 31, 2023.
Leading stock exchanges BSE and NSE will suspend trading in Brightcom Group Ltd. from June 14 after the firm failed to disclose the financial results for two consecutive quarters that ended in September and December 2023.
In two separate circulars, the exchanges said Brightcom Group has not complied with Regulation 33 of SEBI's (Listing Obligations and Disclosure Requirements) norms that deals with submission of financial results for two consecutive quarters, i.e. Sept. 30, 2023 and Dec. 31, 2023.
Hence, the trading in securities of Brightcom Group Ltd. shall be suspended with effect from June 14, 2024, the exchanges added.
The suspension will continue till such time the company complies with the norms. After 15 days of suspension, trading in the shares of non-compliant company would be allowed on a trade-for-trade basis in (Z category) on the first trading day of every week for six months.
As per the BSE, freezing of the entire shareholding of the promoter in the non-compliant listed entity as well as all other securities held in the demat account(s) of the promoter will remain frozen during the period of suspension.
However, trading will not be suspended in case the company complies with SEBI's LODR rules by June 11, the BSE said.
As of December 2023, promoters held 18.38% stake in the company and the public owned the remaining 81.62% stake, shareholding data with the exchanges showed.
Ace investor Shankar Sharma held about 1.14% stake in Brightcom Group at the end of the December quarter.
Brightcom Group was under the scanner of markets regulator SEBI for alleged irregularities in preferential allotments of shares by the company.
In February, the regulator refused to lift the securities market restriction imposed on Suresh Kumar Reddy, promoter of Brightcom Group Ltd., in the case.
In its primary facie findings, SEBI noted that Brightcom Group Ltd. had funded its own preferential allotments and had indulged in round tripping of funds continue to sustain.
The company made preferential allotment of shares in financial years 2019-20 and 2020-21.
The company had issued warrants or shares on a preferential basis on four occasions and raised Rs 867.78 crore from a total of 82 allottees.
