Shares of Brightcom Group hit a lower circuit for the third session in a row on Wednesday as the stock dropped another 5 per cent to Rs 13.32. Shares of Brightcom Group, a stock owned by seasoned investor Shankar Sharma, have taken a hard hit in the last one year as the stock has plunged sharply during the given period. Sebi has recently issued a show-cause notice-cum-interim order against Brightcom Group. The notice by the Securities and Exchange Board of India (Sebi) has alleged a major fraud in the company's financial statements. The interim order has been passed against the company, Suresh Kumar Reddy, Vijay Kancharia, Yerradoddi Ramesh Reddy, and Y Srinivasa Rao. Suresh Reddy and Kancharia are part of the promoter group, while Rao is the CFO. The capital markets regulator said that Brightcom overstated its profits for FY20 to the tune of Rs 868.30 crore by understating expenditures by using irregular accounting practices. Sebi has also made observations that the shareholding pattern of the Promoter holdings in the said period, was not rightly reported. "The scale of fraud is indeed large. The company attempted to camouflage accounting entries in excess of Rs 1,280 crore during 2018-19 and 2019-20 to give a distorted picture of its financial position," said Sebi in its order. Based on the probe, the markets regulator found that the accounting policy followed by Brightcom Group led to overcapitalisation of the intangible assets, which resulted in the inflation of profits. Shares of Brightcom Group hit a lower circuit for the third session in a row on Wednesday as the stock dropped another 5 per cent to Rs 13.32. The stock had settled at Rs 13.92 on Tuesday, 5 per cent lower. In the last one week, it has dropped more than 22 per cent. Shares of Brightcom Group are down 86 per cent from its 52-week high at Rs 94.80 on April 19, 2022. The stock had tested its 52-week low at Rs 11.98 on March 31, 2022. The stock is down 64 per cent in the last six months, while it has lost about 55 per cent in the year 2023 so far. It has lost 90 per cent of its value from its peak in December 2021. Even after the steep fall, shares of Brightcom Group have kept their multibagger status intact in the last five years. The stock has surged about 500 per cent in the given period. The stock has zoomed more than 730 per cent from its Covid-19 lows. Season investor and Dalal Street investor Shankar Sharma owned 2,50,00,000 equity shares or 1.24 per cent stake in the company, as of December 31, 2022. The company is yet to announce its shareholding pattern for the March 2023 quarter. Incorporated in 2000, Hyderabad-headquartered Brightcom Group is in the business of ad-tech, new media and digital advertising with offices in the US, Argentina, Brazil, Chile, Uruguay, Mexico, UK, France, Germany, Sweden, Ukraine, Serbia, Israel, China, and Australia, and with representatives or partners in Poland, and Italy. Analysts continue to remain cautious over the shares of Brightcom Group and they expect that the stock may continue to fall in the near-term. Brightcom share price is under continuous selling pressure due to the recent crisis in the company, said Ravi Singh, Vice-President and Head of Research at Share India. "Investors are advised to exit their holdings immediately in the stock. The stock may witness a free fall in the near term to touch the level of Rs 5 in this negative sentiment scenario," he said.