After its shares hit the 5% down circuit on Wednesday, market watchdog Securities and Exchange Board of India (Sebi) issued an interim order, and Brightcom Group reacted.
The Brightcom Group's failures in preferential allotments were the subject of Sebi's interim ruling. The group's promoter/chairman/managing director, Suresh Kumar Reddy, and the chief financial officer, Narayan Raju, have both been named as suspects by the market regulator.
They are no longer permitted to serve in any director roles until further notice.
Renowned investor Shankar Sharma and 21 other people have also been prohibited by Sebi from selling their interests in the company.
Brightcom Group responded to Sebi's ruling and stated that an internal team has been formed to examine the specifics and ramifications.
The business claimed that it is also considering other possible action plans to deal with this issue. Furthermore, Brightcom Group promised to make sure that any answers are in the best interests of both the business and its stockholders.
"We fully understand that news of such nature may raise concerns among our valued shareholders," Brightcom stated in a stock exchange statement. "We wish to reassure the right course of action will be taken."
"As soon as we received the directive, we quickly established a special internal team to carefully examine the specifics and ramifications. To adequately resolve this scenario, the company is considering various action plans, according to a stock exchange filing.
"We are consulting with legal professionals to make sure that all of our responses are in the best interests of the business and its shareholders. We'll make sure there's constant contact on this matter and give updates as and when important things change, it continued.
