sebi:WTM/ASB/CFID/CFID_4/25730/2023-24
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Facts / Headnote
Interim order issued with show cause notice to noticees to show cause why penalties/adjudicative action should not be initiated for alleged violations of SEBI Act, 1992, SEBI (LODR) Regulations 2015, SEBI (PFUTP) Regulations 2003, Listing Agreement, and SCRA 1956
Provisions invoked
- s. 11
- s. 24
- s. 11(4)
- s. 15A
- s. 19
- s. 12A
- s. 21
- s. 27
- s. 15H
- s. 23H
- s. 27(1)
- s. 133
- s. 260
- s. 152
- s. 134
- s. 129
- s. 152(2)
- s. 143
- s. 149(10)
- s. 12A(2)
Regulations
- Reg. 3
- Reg. 16
- Reg. 17
- Reg. 31
- Reg. 201
- Reg. 24
- Reg. 18
- Reg. 30
- Reg. 33
- Reg. 46
- Reg. 4
- Reg. 4(1)(a)
- Reg. 4(2)
- Reg. 4(1)
- Reg. 3(5)
- Reg. 3(c)
- Reg. 18(3)
- Reg. 48
- Reg. 17(8)
- Reg. 4(1)(c)
Parties
- Brightcom Group Ltd.
- M. Suresh Kumar Reddy
- Mr. Vijay Kancharla
- Mr. Narayana Raju
Holding
SEBI prima facie found that Brightcom Group Ltd. and its officers violated accounting standards (AS 26, Ind AS 36, Ind AS 38) and multiple LODR Regulations by misclassifying research-phase expenditure as assets, failing to recognize impairment losses in profit or loss (recognizing Rs.868.30 Crore and Rs.411.76 Crore impairments under OCI instead), and failing to disclose material developments including initiation of forensic audit.
Full text
_________________________________________________________________________________________ Interim Order cum Show Cause Notice in the matter of Brightcom Group Ltd. Page 2 of 77
_________________________________________________________________________________________ Interim Order cum Show Cause Notice in the matter of Brightcom Group Ltd. Page 3 of 77
_________________________________________________________________________________________ Interim Order cum Show Cause Notice in the matter of Brightcom Group Ltd. Page 4 of 77
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Source: SecMarx — sebi:WTM/ASB/CFID/CFID_4/25730/2023-24. 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.