New Delhi, Aug 23 (IANS): Brightcom Group shares hit the lower circuit of 5 per cent after SEBI barred the company's CMD and CFO from holding directorial positions.

Brightcom Group shares are down 4.96 per cent at Rs 22.98 on BSE.

In a stock exchange filing, Brightcom Group said, “We are writing to update you regarding the Interim Order we received from SEBI on August 22, 2023. We fully understand that news of such nature may raise concerns among our valued shareholders, and we wish to reassure the right course of action will be taken."

“Upon receipt of the order, we immediately set up a dedicated internal team to thoroughly review the details and implications. The company is evaluating potential action courses to address this situation effectively. We are in consultation with legal experts to ensure that all our responses are in the company's and its shareholders' best interest," the company said.

Brightcom Group, M. Suresh Kumar Reddy (BGL’s promoter-cum CMD), Narayan Raju (CFO), were involved in round-tripping of BGL’s own funds in a circular fashion to falsely portray receipt of consideration from allottees of preferential allotments and siphoning off of proceeds of preferential allotments, SEBI has said in an order.

In an order, SEBI Wholetime Member Ashwani Bhatia said Brightcom’s CMD and CFO shall cease to hold the position of a director or a Key Managerial Personnel in any listed company or its subsidiaries until further orders.

BGL, shall place this order before its board of directors, within seven days from the date of receipt of the order.

M. Suresh Kumar Reddy, is hereby restrained from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever until further orders, the SEBI order said.