The Securities and Exchange Board of India (SEBI) on Wednesday imposed a penalty of Rs 3 lakh on actor Shilpa Shetty, her husband and businessman Raj Kundra and his company Viaan Industries for violation of Insider Trading rules.
Shetty, Kundra and Viaan Industries were slapped with the hefty fine for a three-year delay in disclosing an allocation of preferential shares, according to a report by Moneycontrol. Viaan Industries had in 2015 made a preferential allotment of 500,000 equity shares, of which, 128,800 equity shares each were allotted to Kundra and Shetty, who were the promoters of the company.
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.
The SEBI, however, said the value of the transaction was Rs 2.57 crore each, but the company disclosed it in 2019, in violation of the insider trading rules.
The SEBI had served a notice to Shetty and Kundra, both of who accepted the blunder, saying their intention wasn’t malafide. SEBI’s adjudicating officer Suresh B Menon, however, refused to accept their reasoning and imposed the fine.
Kundra was arrested on July 19 for allegedly making pornographic content and publishing them through some mobile applications. He is currently in police custody, with a Mumbai court denying him bail.
Read all the Latest News, Breaking News and Coronavirus News here.
Comments
0 comment