SEBI Fines Raj Kundra and Shilpa Shetty Rs 3 Lakh for Insider Trading

Shilpa Shetty, Raj Kundra have been asked to remit/pay the penalty within 45 days of the receipt of the SEBI order.

Shilpa Shetty with husband Raj Kundra.

(Photo Courtesy: Instagram)

The Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs 3 lakh on actor Shilpa Shetty, her husband and businessman Raj Kundra and their company Viaan Industries for violation of its Insider Trading rules, as per a report by ANI.

The SEBI order reportedly states that the fine has been imposed 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.

"SEBI had conducted an investigation into the tradings/dealings of Viaan Industries Limited (formerly known as Hindustan Safety Glass Industries Limited), during 1 September, 2013, to 23 December, 2015. During the probe 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," the order stated, as quoted by ANI.

The order also noted that Viaan Industries made a preferential allotment of Rs 5 lakh equity shares to four people, and in the said allotment the company allotted 128,800 equity shares each to Raj Kundra and Shilpa Shetty.

As per Regulation 7(2) (a) of SEBI's Prohibition of Insider Trading Rules, 2015, promoters of a company have to disclose their transactions within two days if the amount exceeds Rs 10 lakh. The company then has to relay the disclosure to the stock exchanges within two trading days.

SEBI said the transaction value of Kundra and Shetty's share was Rs 2.57 crore each; however, the final disclosures were made in May 2019 for the 2015 transaction. Kundra and Shetty have been asked to remit/pay the penalty within 45 days of the receipt of the order.

Raj Kundra is currently in judicial custody in a case related to creation and publication of pornographic material.