NSE suspends trading of Brightcom Group shares and moves it to Z category

The National Stock Exchange said in a circular dated May 14 that trading in Brightcom Group’s shares will be suspended from June 14 until the company fails to comply with the master circular.

“After a 15-day suspension, trading in securities of non-compliant companies in (Category Z) would be permitted on the first trading day of every week on a trade-for-trade basis for six months,” the circular said.

At 11 am on May 15, Brightcom shares hit a low and were trading at Rs 12.25 apiece.

“Brightcom Group Limited has complied with the requirements of Regulation 33 (i.e. Filing of Financial Results) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”) in two consecutive quarters i.e. September 30, 2023 and December, not fulfilled June 31, 2023. Therefore, trading in securities of Brightcom Group Limited is suspended from June 14, 2024,” NSE said in a circular.

In February, the Securities and Exchange Board of India (Sebi) refused to lift the securities market restriction imposed on Brightcom Group promoter Suresh Kumar Reddy in a case involving irregularities in preferential allotment of the company’s shares.

He will also continue to be barred from holding the position of director or key manager in any listed company or its subsidiaries, Sebi had said in its confirmatory order.

In its order, the capital markets regulator had pointed out that the prima facie findings that Brightcom Group had financed its own preferential allotments and committed round-tripping of funds still stood.

In addition, 22 companies were prohibited from selling the Brightcom Group shares they held.