Brightcom Received Notice from SEBI for Fraud Accounting
Symbol : BCG
Brightcom Group, an advertising technology firm that was previously known for generating substantial returns of approximately 627% in the past three years, experienced a 5% decline in its share price on April 17.
This was a result of the Securities and Exchange Board of India (SEBI) issuing a show-cause notice to the company for alleged irregularities in its financial accounting and non-disclosure of material information.
SEBI claimed that the company utilized non-standard accounting practices to understate expenditures and overstate profits for the fiscal year 2020.
Additionally, SEBI identified discrepancies in the reporting of promoter holdings during the period. Other non-compliance issues were also highlighted.
On the National Stock Exchange, shares of Brightcom Group fell to Rs 14.70 due to these developments and were locked in the lower circuit during morning trade.