Trading in Brightcom Group shares on BSE and NSE is suspended. What’s next for shareholders?

Trading in Brightcom Group shares has been suspended on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The provisions will remain in force until the company complies with the NSE circular.

The announcement of the trading suspension was made on May 15. A day later, Brightcom Group informed the stock exchanges that it was confident it could avoid the trading suspension and would also announce its results for the September and December quarters of fiscal 2024 by June 11.

On June 11, the company announced results, but only for the September quarter and the first half of fiscal 2024. No clarity was provided on when the December quarter results would be announced.

What’s next for shareholders?

According to the third quarter shareholder structure, Brightcom Group had 656,000 shareholders, i.e. those with an authorized share capital of less than Rs 200,000.

Trading in Brightcom Group shares will now remain suspended for the next 15 days. After that, trading will resume but only on a trade-for-trade basis in category Z. Such trading will only be permitted on the first trading day of each week for the next six months.

A share in category “Z” is a share that has not met the listing requirements of the stock exchanges, has not been able to resolve investor complaints and/or has not reached the necessary agreements with both depositaries.

In the Trade-For-Trade category, only delivery trades are allowed and no intraday trading is possible. To buy such a stock, one must have sufficient funds to get 100% delivery of the stock.

Brightcom Group shares remained at a 5% low for two consecutive sessions on Wednesday and Thursday before trading was suspended.