Ace investor Shankar Sharma's portfolio stock: NSE to suspend trading in this PENNY STOCK, hits lower circuit today, complete details inside!
The reason for the suspension is that the company has not fulfilled the SEBI’s listing obligations and disclosure requirements.
In a recent development, the National Stock Exchange announced that trading in Brightcom Group shares would be suspended from June 14, 2024. This suspension comes because of Brightcom Group's failure to comply with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding the submission of financial results for two consecutive quarters, namely September 30, 2023, and December 31, 2023.
The suspension of trading is a regulatory response to the company's non-compliance with these financial reporting requirements. As per NSE's circular, the suspension will persist until Brightcom Group fulfills the stipulations outlined in the Master Circular.
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Following the initial 15-day suspension period, trading in Brightcom Group shares will be allowed on a trade-for-trade basis in the Z category on the first trading day of every week for six months. This phased approach aims to mitigate potential market disruptions while encouraging the company to rectify its compliance status.
The impact of this announcement was felt in the stock market, with Brightcom Group's share price plummeting around 5 per cent to Rs 12.25 apiece on NSE on May 15. This decline underscores investor concerns regarding the company's compliance issues and their potential implications for its financial health and market performance.
Ace Investor Shankar Sharma holding in Brightcom Group's
Ace investor Shankar Sharma held nearly 2.3 crore shares, equivalent to 1.14 per cent of Brightcom Group, as of the December quarter of FY23. However, the company is yet to disclose its shareholding pattern for the March quarter (Q4FY24), leaving investors and market participants awaiting further clarity on the situation.
This development comes against the backdrop of ongoing regulatory scrutiny surrounding Brightcom Group. In February 2024, SEBI reaffirmed its directives concerning entities involved in the Brightcom Group case. SEBI's investigation into the issuance of preferential shares and warrants revealed lapses, including partial payments made by some allottees.
Last year, SEBI issued an interim order raising concerns over lapses in the preferential issue of shares and warrants, leading to the barring of Suresh Kumar Reddy, the promoter-cum-chairman and managing director of Brightcom Group, along with the chief financial officer Narayan Raju from holding directorial posts until further notice. Subsequently, in December, Brightcom Group filed an application before the Securities Appellate Tribunal seeking a stay on SEBI's order restraining Shankar Sharma and others from selling shares in the company.
The regulatory actions and trading suspension underscore the importance of adherence to disclosure and compliance norms for listed entities. For Brightcom Group, resolving these issues will be crucial to restoring investor confidence and maintaining its standing in the market. As stakeholders await further developments, the company's ability to address regulatory concerns and meet its obligations will shape its trajectory in the coming months.
Investors must be aware of these things while investing in penny stock or low-priced stocks and holding them in their portfolios for multibagger returns.
Disclaimer: The article is for informational purposes only and not investment advice.