Former Brightcom Independent Directors got fined for governance lapses
SEBI) has imposed monetary penalties on former independent directors and audit committee members of Brightcom Group Ltd (BGL), for failing to exercise due diligence in overseeing the company’s financial reporting. One of the two has been fined ₹30 lakh while other has been directed to pay ₹5 lakh.
In its final order dated October 6, 2025, the SEBI held that both directors failed in their fiduciary responsibilities, contributing to the publication of misstated financial statements by Brightcom between FY2014-15 and FY2019-20, in violation of SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.
SEBI’s investigation, supported by a forensic audit, found that Brightcom misrepresented its financial position and inflated profits by ₹1,280.06 crore during FY2018-19 and FY2019-20. The audit revealed that BGL failed to recognise impairment losses arising from the implementation of the EU’s General Data Protection Regulation (GDPR), which significantly affected its operations. Instead, the company incorrectly recorded a loss of ₹868.3 crore under “Other Comprehensive Income” rather than in the profit and loss account for FY2019-20. These irregularities distorted the company’s financial position, misled investors, and enabled promoters to offload shares at inflated prices—undermining investor confidence and market integrity.
