Shivangi Prakash-
Viaan Industries and its proprietors Shilpa Shetty and her husband Raj Kundra are fined Rs 3 lakhs by the Securities and Exchange Board of India for violating the SEBI (Prohibition of Insider Trading) Regulations, 2015.
The order was issued following an examination into the trading activities of a business listed on the Bombay Stock Exchange between 2013 and 2015.
VIL made a privileged allocation of 5,00,000 equity shares to four people on October 29, 2015, with Shilpa Shetty and Raj Kundra receiving 1,28,800 shares each.
In this regard, as the relevant transactions in question through the aforementioned preferential allotment exceeded Rupees Ten Lakh in value, both of them were compelled to make the required disclosure to the company under the provisions of Regulation 7(2)(a) of the PIT Regulations.
Furthermore, the Company was required to make the relevant disclosures to the stock market within two trading days of receiving the disclosures from Shetty and Kundra under Regulation 7(2)(b) of the PIT Regulations.
During the examination, the market regulator discovered that Shetty and Kundra had failed to make the mandatory disclosures under Regulations 7(2)(a) and 7(2)(b) of the PIT Regulations within the timeframe.
Raj Kundra and Shilpa Shetty made the appropriate disclosures in May 2019, which is more than three years late.
“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 notices,” said adjudicating officer Suresh B Menon in an Order.
According to the SEBI, timely disclosures to the Company/stock exchange are critical from the perspective of investors and regulators.
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