5.7 lakh retail investors stuck in Brightcom Group, as NSE, BSE suspend trading from June 14

In a big blow to nearly 5.7 lakh retail investors, of Brightcom Group (BCG), a digital marketing solutions company, the National Stock Exchange (NSE) and the BSE have suspended the trading of the company’s shares from June 14.

“The company has not complied with the SEBI regulations concerning submission of financial results for two consecutive quarters (September and December 2023 quarters). Hence the trading of the company’s securities shall be suspended with effect from June 14, 2024,” the NSE said in a circular on Wednesday.

“The suspension will continue till such time the company complies with the SEBI’s Master Circular dated July 11, 2023. After 15 days of the suspension, trading in the securities of the company would be allowed on trade on the first trading day of every week for six months,” it said.

According to BSE, freezing of the entire shareholding of the promoter in the noncompliant listed entity as well as all other securities held in the demat account(s) of the promoter will remain frozen during the period of suspension.

Vanguard holds stake

Currently, promoters hold 18.38 per cent stake in the company while the public 81.62 per cent. Among the public, 5.7 lakh retail investors hold 37.89 per cent stake in the beleagured company. Global index major Vangurad too have exposure in the company through Vanguard Total International Stock Index Fund (1.10 per cent) and Vanguard Emerging Markets Stock Index Fund (1.09 per cent).

Among FPIs, LGOF Global Opportunities Fund hold 2.48 per cent stake, at the end of December 2023. Among the others included ace investors Shankar Sharma (1.14 per cent stake) and Subrato Saha (2.02 per cent).

The Hyderabad-based company was under the SEBI scanner for over two years for listing violations and for concealing information, non-compliance, and violating other norms. 

The market regulator said that the firm understated expenditures and overstated profits for five years beginning 2014-15. It observed that the scale of fraud was large and the company tried to camouflage accounting entries to the tune of ₹1,280 crore during the period.

The company’s share touched the lower circuit of ₹12.27 on the Bombay Stock Exchange (BSE) on Wednesday. On the NSE, it touched a low of ₹12.25 during the day.

Crime Today News | Markets | Commodities | Forex | Stocks

Source | Powered by Yes Mom Hosting
Crime Today News Agency

Crime Today News

Welcome to Crime Today News, your trusted source for timely and unbiased news coverage. Since our inception in 2014, we have been dedicated to delivering the latest updates to our valued readers and viewers across Telangana.

Related Posts