Brightcom Group’s Chairman and Managing Director, Suresh Reddy, along with CFO Narayana Raju, have announced their resignations from their leadership positions, according to the company’s stock filing on Sunday.
The decision was ratified during a Board of Directors meeting held on the same day. Alongside accepting the resignations, the board has also granted approval for the pursuit of a new CEO and CFO aimed at ensuring the seamless continuation of critical operations.
The company stated in its stock exchange filing, “Received and acknowledged resignation letters from Mr. Suresh Reddy, who was serving as the Chairman & Managing Director (CMD) of the company. Received and acknowledged resignation letters from Mr. Narayana Raju, who held the position of Chief Financial Officer (CFO) of the company.” In response to this news, the company’s stock shares experienced a 5% decline in the market.
The decision comes in the wake of an interim order by the Securities and Exchange Board of India (SEBI), which identified shortcomings in the preferential share issue of Brightcom Group Limited (BGL). SEBI had further imposed a prohibition on Reddy, the promoter-cum-chairman and MD of the company, as well as CFO Raju, from continuing in their positions until further notice.
Both former leaders are currently prohibited from holding directorial or key managerial roles at any listed company or their subsidiaries until further notice. Moreover, Suresh Reddy has been banned from accessing the securities market.
To facilitate the transition, the board has proposed a temporary leadership team. Additionally, it has authorized the initiation of a search for a new CEO and CFO for the company.
The company indicated that it would release a comprehensive press statement in compliance with SEBI’s interim order regarding the departures of Reddy and Raju.
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