On April 17, Brightcom Group shares tanked 5%. Shares were locked in the lower circuit in morning trade after the Securities and Exchange Board of India (SEBI) slapped a show-cause notice over alleged loopholes in financial accounting and non-disclosure of material info.

SEBI said that the company overstated its profits for FY20 by understating expenses and using irregular accounting practices. It also made observations on the firm’s shareholding outline for promoters which, it feels, we’re not rightly stated. Some additional observations on non-compliance were also issued.

At 10.09 am, Brightcom Group’s shares fell 5% to Rs 14.70 on the National Stock Exchange.

The company responded to the show-cause notice that it sought legal advice in this situation.

Brightcom Group is an ad-tech company once considered a multi-bagger due to its robust returns of around 627% over the past three years.

However, this multi-bagger stock is predicted to lose its shine as it has plunged 84.64% over the past year and 50% in 2023.