sebi:Order/SM/AD/2023-24/27829-27830
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Facts / Headnote
Violations established against both Noticees; penalty imposed (quantum not specified in extracted text)
Provisions invoked
- s. 15A
- s. 15
- s. 19
- s. 11
- s. 15H
- s. 15I
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 7(2)(a)
- Reg. 9
- Reg. 9(1)
- Reg. 31(1)(b)
- Reg. 9(4)
Parties
- Suresh Kumar Reddy (Noticee 1)
- Vijay Kumar Kancharla HUF (Noticee 2)
Holding
The Adjudicating Officer held that Noticee 1 (Suresh Kumar Reddy, CEO/MD of Brightcom Group Limited) violated Regulation 9(1) read with Schedule B of PIT Regulations for failure to adopt a Code of Conduct meeting minimum standards, and Noticee 2 (Vijay Kumar Kancharla HUF) violated Regulation 7(2)(a) of PIT Regulations for non-disclosure of trades exceeding INR 10 lakhs and Clause 4(1) of Schedule B read with Regulation 9(1) for trading during trading window closure, except that the res judicata objection was sustained for the July-September 2021 quarter against Noticee 2.
Full text
Page 2 of 26 Adjudication Order in the matter of Brightcom Group Limited 9(1) of PIT Regulations, chief executive officer (hereinafter referred to as “CEO”) or managing director (hereinafter referred to as “MD”) shall formulate code of conduct adopting the minimum standards set out in Schedule B of PIT Regulations. Therefore, SEBI initiated adjudication proceedings against Mr. Suresh Kumar Reddy, CEO and MD of BGL (hereinafter referred to as “Noticee 1/By Name”) for the aforementioned noncompliance of PIT Regulations by BGL.
Page 3 of 26 Adjudication Order in the matter of Brightcom Group Limited as well as through digitally signed email. The SCN sent through digitally signed email to Noticees returned undelivered. However, the SCN issued to Noticees were duly served on them through SPAD.
Page 4 of 26 Adjudication Order in the matter of Brightcom Group Limited c) As per the submissions made by BGL to the Exchanges vide letters dated September 30, 2021 and December 31, 2021, trading window was closed during October 01, 2021 to November 15, 2021 and from January 01, 2022 to January 27, 2022, respectively, for declaration of Unaudited financial results of the Company for the quarter ended September 30, 2021 and December 31, 2021. It has been alleged in the SCN that Vijay Kumar Kancharla HUF had executed trades during the trading window closure period and hence violated the provisions of Clause 4 of Code of Conduct as specified under Schedule B read with Regulation 9(1) of PIT Regulations.
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Source: SecMarx — sebi:Order/SM/AD/2023-24/27829-27830. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.