SEBI imposes Rs 3 lakh penalty on Shetty & Kundra

Raj Kundra on Tuesday was sent to 14 days’ judicial custody in connection creation of pornographic films.

SEBI (Securities and Exchange Board of India) has imposed a forfeit of rupees 3 lakh on Bollywood actor Shilpa Shetty and her husband Raj Kundra along with his company Viaan Industries for violating its Insider Trading rules.

 

Raj Kundra's firm, Viaan Industries had allotted 128,800 shares each to Shilpa Shetty and Kundra in 2015. According to securities exchange regulations, the couple had to inform the company within two days the receipt of shares since its value exceeded rupees 10 lakh.

 

Following which, the company had to inform the same to the SEBI and the disclosure finally happened in May 2019.

 

The duo replied to SEBI’s show-cause notice saying that the delay in making the necessary disclosures under the PIT (Prohibition of Insider Trading) Regulations was due to inadvertence and without any malafide intention.

 

However, this explanation didn’t wash with Suresh B Menon who is SEBI adjudicating officer and his order said, “It is pertinent to mention that the disclosure requirements mandated under the respective regulations serve very important purposes."

 

He also added," The stock exchange is informed so that the investing public will come to know of the position enabling them to stick on with or exit from the company."

 

He further added, "Timely disclosures of the details of the shareholding of the persons acquiring substantial stake is of significant importance.”

 

Raj Kundra is currently in judicial custody for 14 days in a case related to creation and publication of pornographic content.

 

India Scanner News Network

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