SEBI also slaps Shilpa-Raj: Rs 5 lakh fine for insider trading

Mumbai, Dt

Businessman Raj Kundra, who was arrested in a pornography case, has now been slapped by the Sebi. The Securities and Exchange Board of India (SEBI), the market regulator, along with Raj Kundra and his wife and actress Shilpa Shetty paid Rs. A fine of Rs 5 lakh has been imposed.

The action has been taken against Bollywood actress Shilpa Shetty, her husband Raj Kundra and their company for delaying the release of mandatory details to the stock exchange for three years. In 2013, Vivan Industries allotted 1,6,200 shares to Shilpa Shetty and Raj Kundra each. As per SEBI rules, the allotment value of these shares is Rs. As it is more than Rs 10 lakh, both have to inform the company within two days of receiving the shares. In addition, the company has to provide information to the stock exchange. These details were revealed in May 2016.

In response to SEBI's reasoned notice, Kundra and Shetty said they had inadvertently delayed disclosing the details under the Prohibition of Insider Trading (PIT) rule without any malicious act. However, his revelation was made by SEBI official Suresh B. Mann was rejected.