Brightcom group former officials director pay ₹35.4 lakh to settle case with Sebi

Two former officials and an independent director of Brightcom Group have paid ₹35.4 lakh in settlement amount to Sebi to settle a case related to irregularities in the company's financial statements from 2014-15 to 2019-20.

The order came after K Anusha and V Sri Lakshmi (former compliance officers of BGL) and K Jayalakshmi Kumari, an independent director, filed settlement applications proposing to settle the matter without "admitting or denying the findings of fact".

The Securities and Exchange Board of India (Sebi) received complaints for the period October 2020 to March 2021 against Brightcom Group Ltd (BGL) alleging misstatements/ irregularities in the financial statements of BGL.

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Thereafter, Sebi initiated an investigation into the affairs of BGL for the period covering financial years from 2014-15 to 2019-20, to ascertain possible violations of provisions of the Securities Contracts (Regulation) Act (SCRA). The regulator sent a show cause notice (SCN) on September 3, 2024, to various entities, including the applicants, for the alleged violations.

Sebi found that Jayalakshmi, a member of BGL's audit committee during the probe period, failed to ensure that BGL's published financial statements as per the applicable accounting standards and presented a true and fair view of the company's affairs.

Anusha and Lakshmi also failed to ensure proper quarterly shareholding disclosures to stock exchanges during their respective tenures. Lakshmi also issued a misleading press release about the appointment of an internal auditor in April 2018, the regulator noted.

Pursuant to the receipt of the application, Sebi recommended settling the matter on payment of the settlement amount, where Anusha paid ₹10.72 lakh, while Lakshmi and Jayalakshmi paid ₹12.35 lakh each.

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In addition, Anusha has agreed not to associate with BGL or its associates in any capacity for a year. Lakshmi and Jayalakshmi have undertaken not to engage with BGL or its affiliates for one year and two years, respectively, in any professional, employment, or consultancy role.

"...the proceedings initiated against the applicants vide SCN dated September 3, 2024, are disposed of," Sebi's whole-time member Ananth Narayan G said in the order.

The applicants remitted the settlement amounts, which was confirmed by the regulator. However, Sebi retains the right to reopen the case if representations made during the settlement process are found to be false or if terms are breached.

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