The Securities and Exchange Board of India has 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 its insider trading rules.
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.
In addition to this, a Mumbai court rejected the bail plea of Raj Kundra on Wednesday after the prosecution contended the police investigation was still on and his release at this juncture will derail the probe. Kundra was denied bail by additional chief metropolitan magistrate S B Bhajipale.
On the other hand, Kundra's lawyer made a forceful plea for bail in the court and said that 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.
Kundra, who was arrested on July 19 by the Mumbai police's crime branch in a case of alleged creation and publishing of pornographic films, after being charged under relevant sections of the Indian Penal Code, the Information Technology Act and the Indecent Representation of Women (Prohibition) Act.
The cops have claimed that during their probe, it was found Kundra set up Armsprime Media Pvt Ltd, which, through London-based Kenrin Pvt Ltd, bought 'Hotshots' app to upload objectionable videos on social media.
They also said that Kundra earned more than Rs 1.17 crore between August and December last year by uploading pornographic content online through Hotshots.
The police claimed to have found 51 obscene videos - 35 with Hotshots logo and 16 with BollyFame logo, during searches at the office of the accused. After Kundra's arrest, the crime branch had described him as the "key conspirator" of the case.
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