Shilpa Shetty, Raj Kundra Fined for Insider Trading Fraud

    Actor Shilpa Shetty and her businessman husband Raj Kundra currently under police custody has been slapped a fine of Rs. 3 Lakh for insider trading on Wednesday.

    The Securities and Exchange Board of India (SEBI) imposed a penalty to their company Viaan Industries for violation of its 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.

    “Securities and Exchange Board of India had conducted an investigation 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.

    SEBI slaps penalty on Shilpa Shetty and Raj Kundra for Insider Trading

    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,” SEBI order said.

    Shilpa Shetty and Raj Kundra in a big soup for insider trading charges

    Raj Kundra and Shilpa Shetty fined by SEBI for insider trading fraud –

    The SEBI order noted that in 2015, Viaan Industries made a preferential allotment of 5 lakh equity shares to four persons and in the said preferential allotment, the company allotted 128,800 equity shares each to its two promoters–Kundra and Shilpa Shetty.

    As per Regulation 7(2) (a) of SEBI’s Prohibition of Insider Trading Rules, 2015, promoters of the company are required to disclose their transaction to the company within two days, if the amount exceeded ₹ 10 lakh, following which the company 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 ₹ 2.57 crore each; however, the final disclosures were made in May 2019 for the 2015 transaction.


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