Brightcom Group stock suspended from trading on BSE, NSE

Brightcom Group shares have been halted from trading on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) today. This suspension will persist until the company adheres to the master circular issued by the NSE.

shares have been suspended from trading on both the and the today. This suspension will remain in place until the company complies with the master circular issued by the NSE.

The suspension of trading came after the company failed to declare its quarterly earnings for two consecutive quarters ending September 30, 2023, and December 31, 2023.

Earlier in May, the NSE had announced that trading in Brightcom Group shares would be suspended from June 14 and would continue until compliance with the master circular. After a 15-day suspension, trading will resume on a trade-for-trade basis or in the 'Z' category on the first trading day of every week for the next six months.

A 'Z' category stock is one that has failed to comply with listing requirements of the exchanges, failed to resolve investor complaints, or has not made required arrangements with both depositories. Meanwhile, under the Trade-For-Trade category, only delivery trades are permitted, and no intraday trading is allowed. To buy such a stock, one must have funds for 100% delivery of the stock.

However, on June 11, the company declared results only for the September quarter and the first half of the financial year 2024, without providing clarity on when the December quarter results would be announced.

For the September quarter, Brightcom Group's revenue remained flat at Rs 112 crore, while Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) fell to Rs 1 crore from Rs 3.92 crore in the same quarter last year. Net profit for the period stood at Rs 63 lakh, up from Rs 59 lakh in the year-ago quarter, while the margin narrowed to 0.9% from 3.47% last year.

Brightcom Group has also been in the news for several negative reasons. In February, SEBI issued confirmatory orders against the company, restraining promoter-cum-chairman and managing director Suresh Kumar Reddy from holding any directorial positions until further notice. The company was also barred from dealing in the securities market.

In August last year, the capital market watchdog passed a second interim order against Reddy, Raju, Sharma, and 21 other individuals for their alleged involvement in round-tripping the company’s funds to falsely portray receipt of proceeds through preferential allotment of shares.

In October 2022, SEBI received complaints regarding funds raised by Brightcom Group through a preferential issue of shares and warrants during the FY19-21 period. The market regulator alleged that the group raised money through preferential issues to entities directly or indirectly connected to it and that the funds raised were given as loans and advances to its subsidiaries.

Shares of Brightcom Group ended Thursday's trading session in a lower circuit of 5% before trading was suspended.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



Source: Stocks-Markets-Economic Times

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