The Market Regulator, Securities, and Exchange Board of India (SEBI), imposed a penalty of Rs 3 lakh on Bollywood Actor Shilpa Shetty, her husband, and businessman Raj Kundra, his company Viaan Industries for flouting Insider Trading rules.
As per the SEBI order, the fine has been imposed on Kundra, Shetty, and their company for a delay of three-year in the mandatory disclosure to stock exchanges. The market regulator said the penalty has to be paid jointly and severally by Kundra and Shetty, who are promoters of Viaan Industries.
As per the SEBI order investigation was conducted into the trading/dealings in the scrip of Viaan Industries Limited (formerly known as Hindustan Safety Glass Industries Limited), during the period September 01, 2013, to December 23, 2015. Pursuant to the investigations, it was observed that Ripu Sudan Kundra, Shilpa Shetty Kundra, and Viaan Industries Ltd had allegedly violated the provisions of Regulations 7(2)(a) and 7(2)(b) of SEBI (Prohibition of Insider Trading) Regulations, 2015.
According to the SEBI order, Viaan Industries Limited made a “preferential allotment of 5,00,000 equity shares to four persons” on October 29, 2015. “In this preferential allotment, Ripu Sudan and Shilpa Kundra each received 1,28,800 shares,” the order states.
During the investigation, SEBI discovered that Shilpa Shetty and Raj Kundra failed to make the required disclosures under the SEBI Regulations within the specified time frame.
Following the investigation, SEBI imposed a Rs 3 lakh penalty on Shilpa Shetty, Raj Kundra, and Viaan Industries for violating the SEBI (Prohibition of Insider Trading) Regulations, 2015.
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