Capital markets regulator, SEBI, on Tuesday, levied fines totalling ₹40 lakh on Brightcom Group and its promoters for flouting regulatory norms. Brightcom Group Ltd (BGL) is listed on both BSE and NSE.
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).
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.
Also read: SEBI levies ₹50 lakh fine on 10 entities for indulging in non-genuine trades
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 during April 2020 to August 2021.
They had to file necessary disclosures as they had breached the regulatory threshold of ₹10 lakh on various occasions as per the Prohibition of Insider Trading (PIT) norms.
However, they failed to file the necessary disclosures under the norms and flouted the PIT regulations.