By Malvika Gurung
Investing.com -- Shares of digital marketing company Brightcom Group (NS: BRIH ) were locked in at a 5% lower circuit of Rs 19.8 apiece on Monday as the company announced the resignations of Chairman & Managing Director (CMD) Suresh Reddy and Chief Financial Officer (CFO) Narayana Raju.
In a Board meeting conducted at 8 pm on Sunday and concluded at 9:48 pm, Brightcom Group’s Board of Directors received and acknowledged the resignation letters of Reddy and Raju, with the dates of their cessation as August 27, 2023.
The resignations of the two executives come following the Enforcement Directorate’s (ED) raids conducted at five office locations of Brightcom Group, along with the residences of Suresh Reddy and Narayana Raju in Hyderabad, and the company’s auditor P. Murali Mohana Rao’s house last week.
The Hyderabad-based digital marketer has also announced a proposal for a Transition Leadership Team, with the responsibility of overseeing the leadership transition process.
The company’s Board has approved the search for a new CEO and CFO to ensure a smooth continuation of essential operations.
“The Board is committed to managing this leadership transition in a responsible and strategic manner, prioritizing effective communication, regulatory compliance, financial stability, and the well-being of the company's employees and stakeholders,” Brightcom said on Sunday.
The searches were conducted under the provisions of the Foreign Exchange Management Act (FEMA), following the investigations of the Securities and Exchange Board of India (SEBI) regarding findings of impairment of assets worth Rs 868.3 crore by the Hyderabad-based company through its subsidiaries overseas.
Shares of the small-cap company have tanked 18.5% in the past four trading sessions, falling continuously.
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