The Enforcement Directorate (ED) on Saturday conducted searches under the provisions of FEMA, 1999 at 5 locations in Hyderabad at residences of Brightcom Group Ltd’s CEO and CFO, and premises of the company’s auditor P Murali Mohana Rao, according to ED’s official account on the X platform.
During the search, various incriminating documents, digital devices, unaccounted cash of ₹3.30 crore and gold jewellery and bullion worth ₹9.30 crore from the residence of auditor, P. Murali Mohana Rao were recovered and seized, ED said on Saturday
Also read: Shankar Sharma-backed company Brightcom Group sets board meeting to discuss SEBI order. Details here
In June this year, market regulator Sebi levied fines of ₹40 lakh on Brightcom Group and its promoters for flouting regulatory norms.
The regulator slapped a fine of ₹12 lakh on Geetha Kancharla, ₹6 lakh each on Vijay Kumar Kancharla HUF, Vijay Kumar Kancharla, Karta of HUF, and M Suresh Kumar Reddy (Chairperson and MD), and ₹5 lakh each on S V Rajyalaxmi Reddy and Brightcom Group Ltd (BGL).
Also read: Brightcom share price hits lower circuit on SEBI order; Shankar Sharma says have submitted all required remittance data
Sebi had conducted an examination in the matter of BGL to ascertain the violation of provisions of insider trading norms, if any, by certain entities while trading in the shares of the company from April 2020 to August 2021.
In its examination, the regulator found that Vijay Kumar Kancharla HUF, M Suresh Kumar Reddy, S V Rajyalaxmi Reddy and Geetha Kancharla traded in the scrip of BGL from April 2020 to August 2021.
This week, Sebi barred Brightcom Group’s Chief Executive Officer M Suresh Kumar Reddy and Chief Financial Officer Narayan Raju from holding directorial positions over irregularities in the marketing firm’s preferential share allotments.
SEBI said that it found “manipulations” carried out by Brightcom in its preferential allotments, and restrained Reddy from buying, selling, or dealing in securities.
Sebi on 23 August said that the Hyderabad-based digital marketing firm attempted to “cover up its misdeeds” by submitting forged and fabricated bank statements, which also raised doubts about the authenticity of the company’s historical financial disclosures.
However, the company said it is consulting legal experts and evaluating potential courses of action.
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Updated: 26 Aug 2023, 01:50 PM IST
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