SEBI Slaps Penalty On Shilpa Shetty, Raj Kundra & Viaan Industries Ltd For Violation Of Insider Trading Rules

Markets regulator Securities and Exchange Board of India (Sebi) today 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.

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The Sebi notice follows an investigation held between September 2013- December 2015 to ascertain the 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 ₹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 ₹10 lakh in value.

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"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.

Notices refer to Viaan Industries, Shilpa Shetty Kundra and Ripu Sudan Kundra. Shilpa and Ripu are the promoters of the firm. Viaan Industries was formerly known as Hindustan Safety Glass Industries Ltd.