Raj Kundra, Shilpa Shetty fined by SEBI for disclosure lapses

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Markets regulator SEBI slapped monetary penalty on Viaan Industries Ltd, Shilpa Shetty Kundra and Ripu Sudan Kundra, who is also known as Raj Kundra, for disclosure lapses and consequent violation of insider trading norms. According to a SEBI order, a total fine of Rs 3 lakh has been imposed on them to be paid jointly and severally. Shilpa and Raj are the promoters of Viaan Industries.

The order follows a probe conducted between September 2013- December 2015 to ascertain violation of Prohibition of Insider Trading (PIT) norms by the entities.

In October 2015, Viaan Industries made a preferential allotment of 5 lakh equity shares to four persons and 1,28,800 lakh shares each, amounting to Rs 2.57 crore each, were allotted to Ripu and Shilpa in the allotment.

In this regard, they were required to make timely requisite disclosure to the company in terms of PIT norms since the transactions exceeded Rs 10 lakh in value.

"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. Noticees refer to Viaan Industries, Shilpa Shetty Kundra and Ripu Sudan Kundra. They are the promoters of the firm.

Viaan Industries was formerly known as Hindustan Safety Glass Industries Ltd.

Meanwhile, Raj Kundra was arrested by Mumbai Police on July 19 after being booked for alleged production and distribution of pornographic films through apps under relevant sections of the Indian Penal Code and the Information Technology Act. The magistrate's court later remanded Kundra in judicial custody for 14 days. In a recent development, Kundra's lawyer had filed a bail plea in court which has been rejected.

Opposing the same, the public prosecutor alleged that Kundra is an influential man and granting him bail can affect the investigation. Quashing his claims, Kundra's lawyer affirmed that the businessman has been cooperating with the investigating agencies since the beginning.

(With PTI Inputs)