SEBI Imposes Rs 3 Lakh Fine On Shilpa Shetty, Raj Kundra For Violating Insider Trading Norms

According to SEBI, Ms. Shilpa Shetty Kundra and Viaan Industries Ltd had allegedly violated the provisions of Regulations of SEBI leading to adjudication proceedings.

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Mumbai: The Securities and Exchange Board of India (SEBI), on Wednesday, imposed a penalty of Rs 3 lakh on Bollywood actor Shilpa Shetty, her husband, and businessman Raj Kundra his company Viaan Industries for violating Insider Trading rules.

Amid the ongoing investigation into the porn films racket case,  the market regulator fine comes for a three-year delay in mandatory disclosure to the stock exchanges. ABP News has reviewed a copy of the order.

According to SEBI, Ms. 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, leading to adjudication proceedings.

The SEBI investigation into the trading/dealings in the scrip of Viaan Industries Limited (formerly known as Hindustan Safety Glass Industries Limited) dates back to the period between September 01, 2013, and December 23, 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.

Shilpa Shetty and Raj Kundra were required to disclose the required disclosure following the allotment of the shares via preferential allotment as the value of these transactions exceeded Rs 10 lakh, necessitating this disclosure.

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.