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The Enforcement Directorate (ED) on Saturday conducted searches under the provisions of FEMA, 1999 at 5 places in Hyderabad, including the residences of CEO and CFO of Brightcom Group Ltd and the house of company auditor P Murali Mohan Rao. News agency ANI has given this information. In June this year itself, SEBI had imposed a penalty of ₹40 lakh on Brightcom Group and its promoters for violating regulatory norms.
SEBI fined Geeta Kancharla, Vijay Kumar Kancharla HUF, Vijay Kumar Kancharla, Karta of HUF and M Suresh Kumar Reddy (Chairperson and MD) ₹6 lakh each and SV Rajyalakshmi ₹5 lakh each. SEBI has banned 23 people, including veteran investor Shankar Sharma. Since then there has been a rush to sell shares.
The regulator found in its investigation that Vijay Kumar Kancharla HUF, M Suresh Kumar Reddy, SV Rajyalakshmi Reddy and Geeta Kancharla traded in BGL shares from April 2020 to August 2021. Sebi this week barred Brightcom Group Chief Executive Officer M Suresh Kumar Reddy and Chief Financial Officer Narayan Raju from directorships over irregularities in preferential allotment of shares to the marketing firm. Sebi said it detected “manipulation” in its preferential allotment by Brightcom and barred Reddy from buying, selling or dealing in securities.
Sebi on August 23 said the Hyderabad-based digital marketing firm tried to “conceal its misdeeds” by submitting fake and fake bank details, which also cast doubt on the authenticity of the company’s historical financial disclosures. However, the company said it is consulting legal experts and evaluating possible actions.