Brightcom Group’s Former Director, Compliance Officer Pay ₹24.70 Lakh To Settle Financial Mis-statement Case

Moneylife Digital Team 10 December 2025

Investor Interest

Two former officials, an independent director and a member of the audit committee and the compliance officer of Brightcom Group Ltd (BGL) have settled regulatory proceedings initiated by the market regulator, the Securities and Exchange Board of India (SEBI), after agreeing to pay a combined settlement amount of ₹24.70 lakh. As part of the settlement, M Vijaya Bhasker Reddy, independent director and audit committee member of BGL accepted a two-year non-association period with the company, while ex-compliance officer M Manohar agreed not to associate with BGL or any of its group entities for one year.

The settlement brings closure to allegations against the two former officials of BGL relating to mis-statements and irregularities in the company’s financial statements over several years.

The case originated from complaints received by SEBI between October 2020 and March 2021, which led to an investigation into the company’s financial disclosures for the period from FY14-15 to FY19-20.

Following the inquiry, SEBI issued a show-cause notice (SCN) on 3 September 2024, outlining several lapses. Mr Reddy, who was an independent director and audit committee member from June 2012 to September 2015, was charged with failing to ensure that the company’s published financial statements adhered to applicable accounting standards and presented a true and fair view of its financial health.

Mr Manohar, who served as compliance officer between August 2019 and October 2021, was accused of failing to disclose the initiation of a forensic audit and not ensuring the accuracy of the shareholding pattern submitted to stock exchanges.

As the proceedings continued, both individuals filed settlement applications under the SEBI (Settlement Proceedings) Regulations, 2018. Their revised proposals were examined by SEBI’s internal committee (IC) and subsequently placed before the high-powered advisory committee (HPAC) on 5 June 2025.

After reviewing the matter, HPAC recommended accepting the settlement terms proposed by the parties which involved the payment of ₹12.35 lakh each and restrictions on their future association with the company.

Once SEBI received the settlement amounts, it formally disposed the proceedings on 9 December 2025.

SEBI has made it clear, however, that the settlement does not absolve the applicants if any representations made during the process are later found to be incorrect or if any condition of the settlement undertaking is breached. In such situations, the regulator reserves the right to initiate enforcement action.

This settlement order adds to the series of regulatory interventions concerning Brightcom group, a company that has faced persistent scrutiny over governance lapses, disclosure failures and questions surrounding the integrity of its financial reporting.

These recent penalties against the independent directors are part of a wider crackdown by SEBI on Brightcom group. In a separate settlement, BGL director and two top officials paid Rs35.42 lakh to SEBI to resolve violations of disclosure norms, highlighting continued regulatory enforcement to ensure transparency in corporate governance.(Read: Brightcom Group’s Director, 2 Top Officials Pay Rs35.42 Lakh To Settle Disclosure Norm Violations Case with SEBI).

Further, SEBI has also taken strict action against the promoters of Brightcom group. The promoters were fined Rs34 crore and barred from the securities market for five years, including M Suresh Kumar Reddy and Vijay Kancharla, demonstrating SEBI’s firm stance against misrepresentation of accounts and market misconduct (Read: Brightcom Group: SEBI Suggests ED Examination in Overseas Loan Settlement by Ex-CMD Suresh Kumar Reddy)

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