Brightcom Officials Settle Case with Sebi

New Delhi, Dec 9 (PTI) Two former officials of Brightcom Group Ltd (BGL) on Tuesday settled a case of flouting regulatory norms with markets regulator Sebi after paying Rs 12.35 lakh each.

As part of the settlement terms, M Manohar agreed not to associate with BGL or its group companies for one year, while Vijaya Bhasker Reddy agreed to a two-year non-association period.

Sebi, in its show cause notice, alleged that Manohar, then compliance officer of BGL, failed to disclose the initiation of a forensic audit and did not ensure correct disclosure of the company's shareholding pattern to stock exchanges.

Reddy, who served as a non-executive independent director and a member of the audit committee, was accused of not ensuring that the company's financial statements were accurate and in compliance with applicable accounting standards.

These allegations were detailed in a show-cause notice issued in September 2024, after Sebi concluded its investigation into the company's affairs.


The probe covered financial years 2014-15 to 2019-20 and sought to determine whether BGL had violated provisions of the Sebi Act and the Securities Contracts (Regulation) Act, 1956.

The investigation stemmed from complaints received between October 2020 and March 2021, which alleged misstatements and irregularities in the company's financial statements.

While the proceedings were still underway, both officials submitted separate settlement applications under Sebi's settlement norms, whereby they proposed resolving the matter "without admitting or denying the findings of fact and conclusions of law".

Sebi reviewed the proposals, after which both individuals remitted the settlement amount of Rs 12.35 lakh each.

With the settlement terms accepted and payments received, Sebi, in its order, said that the proceedings initiated against the two officials through the September 2024 show cause notice now stand disposed of.