The settlement order followed submissions from K Anusha and V Sri Lakshmi, former compliance officers of BGL, along with K Jayalakshmi Kumari, an independent director. They proposed resolution without “admitting or denying the findings of fact.”
The Securities and Exchange Board of India (Sebi) received complaints between October 2020 and March 2021 regarding Brightcom Group Ltd (BGL), claiming inaccuracies in the company’s financial disclosures.
Also Read: SEBI to launch ‘SEBI Check’ tool to verify authenticity of UPI addresses
Subsequently, Sebi commenced an investigation into BGL’s operations for the financial years 2014-15 to 2019-20 to identify potential violations of the Securities Contracts (Regulation) Act (SCRA). A show cause notice (SCN) was issued on September 3, 2024, to several entities, including the applicants, concerning the alleged breaches.
Sebi determined that Jayalakshmi, a member of BGL’s audit committee during the reviewed period, did not ensure that the company’s financial statements adhered to applicable accounting standards, failing to present an accurate depiction of BGL’s status.
Anusha and Lakshmi also neglected to provide accurate quarterly shareholding disclosures to stock exchanges while in their respective positions. Additionally, Lakshmi issued a misleading press release concerning the appointment of an internal auditor in April 2018, as noted by the regulator.
Following the receipt of the application, Sebi recommended settling the matter with the payment of the settlement amount, with Anusha contributing ₹10.72 lakh, while Lakshmi and Jayalakshmi each paid ₹12.35 lakh.
Also Read: Jio BlackRock secures SEBI nod to operate as investment adviser
Moreover, Anusha has agreed not to associate with BGL or its affiliates in any capacity for a year. Lakshmi and Jayalakshmi have committed to refraining from any engagement with BGL or its subsidiaries for one and two years, respectively, in professional, employment, or consultancy roles.
“…the proceedings initiated against the applicants via the SCN dated September 3, 2024, are disposed of,” stated Sebi’s whole-time member Ananth Narayan G in the order.
The applicants have paid the settlement amounts, which has been verified by the regulator. However, Sebi retains the right to revisit the case if any representations made during the settlement process are found to be false or if terms are violated.
Also Read: NSE receives SEBI approval to launch monthly electricity futures
