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Informist, Monday, Oct. 6, 2025

 

NEW DELHI - The Securities and Exchange Board of India Monday imposed a penalty of INR 3 million on Brightcom Group Ltd.'s non-executive independent director Allam Raghunath for his role in approving misrepresented financial statements of the company and failing to raise any objections to accounting irregularities in the company. SEBI also imposed a penalty of INR 500,000 on the company's non-executive independent director Subrato Saha for a similar breach of regulations.

 

SEBI had passed a final order on Feb. 6 against the company, ruling that the company's non-compliance with accounting standards had resulted in misrepresentation of its financial statements for financial years 2014-15 (Apr-Mar) to FY20. SEBI had issued show-cause notices to Raghunath, Saha, and five other key management personnel or directors on Sept. 3, 2024, on the issue.

 

In Monday's order, SEBI said that Raghunath served as an audit committee member for four of the six financial years covered in the investigation period. SEBI said he was also the audit committee chairman during the period when impairment losses were incorrectly recorded, resulting in inflated profits.

 

Monday, shares of Brightcom Group closed 3.1% lower at INR 13.58 on the National Stock Exchange.  End

 

Reported by Rajesh Gajra

Edited by Saji George Titus

 

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