Days after the arrest of Raj Kundra, the Securities and Exchange Board of India (SEBI) on Wednesday, July 28, imposed a penalty of INR 3 lakhs on the actor Shilpa Shetty, her husband and his company Viaan Industries for violation of Insider Trading Rules.
According to reports, Shetty, Kundra and Viaan Industries were slapped with a hefty fine for a three-year delay in disclosing an allocation of preferential shares.
Raj Kundra and Shilpa Shetty both are promoters of Viaan Industries. Hence, the penalty has to be paid jointly. Moreover, Shilpa Shetty was one of the directors of this company and resigned last year.
Reportedly, in 2015, Viaan Industries had made an allotment of 500,000 equity shares. Of which, 128,800 equity shares each were allotted to Kundra and Shetty.
As per SEBI’s Prohibition of Insider Trading Rules, 2015, the promoters are supposed to reveal monetary transactions to the company in two days if it is above INR 10 lakhs. The company then has to inform the stock exchanges in two trading days.
However, the SEBI mentioned that the value of the transaction was INR 2.57 crores each, but the company disclosed it in 2019, violating the insider trading rules.
SEBI had conducted an investigation into the dealings of Viaan Industries Limited, formerly known as Hindustan Safety Glass Industries Limited, for the period between September 01, 2013, and December 23, 2015.
For those unversed, Raj Kundra is currently facing investigations for allegedly producing and distributing porn films through a subscriber driver mobile application called HotShots. Later, he was arrested by the Mumbai Police on July 19 and is currently under judicial custody.
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