SEBI

Intermediaries/ ther entities need to showcase their performance to attract more clients and grow and continue to do business. However, in the rush for more clients, some of these entities may indulge in making inflated claims of their performance or recommendations to investors, thereby misleading the investors, said a SEBI consultation paper.

"Market infrastructure institutions (i.e., stock exchanges, clearing corporations and depositories) are systemically important institutions as they, inter-alia, provide infrastructure necessary for the smooth and uninterrupted functioning of the securities market.

As per a new paper, no SEBI registered intermediaries/regulated entities or their agents/representatives shall, directly or indirectly, have any association/relationship in any form, whether monetary or non-monetary, for any promotion or advertisement of their services/products, with any unregistered entities (including finfluencers).

The provisions of this circular shall come into force with effect from November 1, 2023, SEBI said.

Brightcom Group shares are down 4.96 per cent at Rs 22.98 on BSE.

In the order, SEBI's Wholetime Member Ashwani Bhatia said Brightcom’s CMD and CFO shall cease to hold the position of a director or a key managerial person in any listed company or its subsidiaries until further orders.

“However, he has failed to provide the same. Interestingly, one of the reasons for non-submission of payment details, cited by Shankar Sharma in his email dated August 15, is that 'we have been constrained by the delay on part of the company to reconcile all the remittances'," the order said.

The company in its reply to BSE said: “We would like to submit that the Company is regularly intimating all the events, information etc. that have a bearing on the operation/performance of the company which include all price sensitive information, etc. to the Stock Exchanges, as per Regulation 30 of the SEBI (LODR) Regulations, 2015.

While the Entities may argue that even the limited restraint noted above will be excessive and disproportionate in the matter, it is emphasized that the imminent effect of permitting the Entities to be in position of influence is that the ongoing investigation cannot be fair and complete.

The market regulator said that it has examined 24 matters in compliance with orders of the top court and “out of the said 24 investigations/ examinations, 17 are final and complete."