Shetty, Kundra and Viaan Industries were slapped with a fine for an alleged three-year delay in disclosing an allocation of preferential shares.
A penalty of Rs 3 lakh was imposed on actor Shilpa Shetty, her husband Raj Kundra and his company Viaan Industries for violation of Insider Trading rules by the Securities and Exchange Board of India (SEBI) on Wednesday.
According to a report by Moneycontrol, the fine was imposed for a three-year delay in disclosing an allocation of preferential shares. In 2015, Viaan Industries had made a preferential allotment of 500,000 equity shares, of which, 128,800 equity shares each were allotted to the promoters of the company – Kundra and Shetty.
SEBI’s Prohibition of Insider Trading Rules, 2015, states that the promoters are supposed to reveal monetary transactions to the company in two days if it is above Rs 10 lakh. The company then has to inform the stock exchanges in two trading days.
However, in violation of the insider trading rules, the value of the transaction was Rs 2.57 crore each, but the company disclosed it in 2019, SEBI said.
Also read: Bollywood Actress Shilpa Shetty’s Husband Raj Kundra Arrested By Mumbai Police In Porn Films Case
The SEBI had served a notice to Shetty and Kundra, both of who accepted the blunder, saying that their intention wasn’t to deceive. However, SEBI’s adjudicating officer Suresh B Menon, refused to accept their reasoning and imposed the fine.
Raj Kundra was arrested on July 19 for allegedly making pornographic content and publishing them through some mobile applications. He is currently in police custody. The Mumbai court has denied him bail.
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