The Securities and Exchange Board of India (SEBI) slapped a monetary penalty on Shilpa Shetty Kundra, Ripu Sudan Kundra, who is also known as Raj Kundra, and Viaan Industries Ltd for disclosure lapses and consequent violation of insider trading rules. A total fine of ₹3 lakh has been imposed on them to be paid jointly and severally, as per a SEBI order. Shilpa and Ripu are the promoters of Viaan Industries.
In its adjudication order, the market regulator said it had conducted an investigation into the trading or dealings in the scrip of Viaan Industries Ltd, formerly known as Hindustan Safety Glass Industries Limited, during the period September 1, 2013, to December 23, 2015, and was found 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.
The Sebi order said on October 29, 2015, VIL made a preferential allotment of 5,00,000 equity shares to four persons and 1,28,800 shares each was allotted to Raj and Shilpa Shetty.
After the preferential share allotment, both of them were required to make the necessary disclosure to the company as per the SEBI rules as the transaction exceeded Rs 10 lakh in value.
The company was also required to make the necessary disclosures to the stock exchange in two trading days of the receipt of the disclosures Shilpa and Raj Kundra. Sebi observed that they allegedly failed to make the relevant disclosures within the stipulated time.
“It is on record that the relevant disclosures under the PIT Regulations were made by the Noticees with a delay of more than three years,” Sebi noted. “Therefore, considering these facts and circumstances, I hold that this case deserves imposition of monetary penalty upon the Noticees,” said adjudicating officer Suresh B Menon in an order. His order said: “It is pertinent to mention that the disclosure requirements mandated under the respective regulations serve very important purposes. 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. Timely disclosures of the details of the shareholding of the persons acquiring substantial stake is of significant importance.” Here ‘Noticees’ refer to Viaan Industries, Shilpa Shetty Kundra and Ripu Sudan Kundra.
Earlier, a city court rejected the bail plea of Raj Kundra, arrested in a case of alleged creation of adult movies and publishing them through apps, after the prosecution contended the police probe was still on and his release at this juncture will derail the investigation. On the other hand, Kundra’s lawyer made a forceful plea for bail in the court, saying his client was not a “terrorist” and pointed out that a charge-sheet has already been filed in the case which was registered in February.
The 45-year-old businessman was arrested on 19 July by Mumbai police’s crime branch after being charged under relevant sections of the Indian Penal Code, the Information Technology Act and the Indecent Representation of Women (Prohibition) Act.
