{"id":251868,"date":"2021-07-29T12:00:30","date_gmt":"2021-07-29T06:30:30","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=251868"},"modified":"2021-07-29T11:37:25","modified_gmt":"2021-07-29T06:07:25","slug":"insider-trading","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/07\/29\/insider-trading\/","title":{"rendered":"SEBI | Financial Racket: Kundra, Shetty into murky waters again | Imposes fine for insider trading on Viaan Industries"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Securities Exchange Board of India (SEBI):<\/strong> Suresh B Menon, Adjudicating Officer, imposed a monetary penalty of Rs three lakh on Viaan Industries and its promoters under the provision of Section 15A(b) of the SEBI Act, for violating Regulations 7(2), 7 SEBI 7(2) (a)\u00a0 and 7 (2) (b) of the Prohibition of Insider Trading Regulations, 2015 (PIT).<\/p>\n<p style=\"text-align: justify;\">In the pertinent matter, on October 29, 2015, Viaan Industries Limited (VIL) made a preferential allotment of 5,00,000 equity shares to four persons and in the said preferential allotment 1,28,800 shares each were allotted to Noticee no. 1 &amp; 2 viz., Ripu Sudan Kundra and Shilpa Shetty Kundra, respectively. Both the noticees were required to make the necessary disclosure to the company in terms of the provisions of Regulation 7(2) (a) of the PIT Regulations, as the relevant transactions in question through the aforementioned preferential allotment exceeded Rupees 10 Lakh in value. And the Company was required to make the necessary disclosures to the stock exchange within two trading days of the receipt of the disclosures from Noticee no. 1 and 2 or from becoming aware of such information pertaining to the transactions. But during the course of investigation, it was observed that the Noticees allegedly failed to make the relevant disclosures required under Regulations 7 (2) (a) and 7 (2) (b) of the PIT Regulations within the stipulated time period. Thereafter, it was further observed that even when the disclosure was so made it was after a delay of more than 3 years.<\/p>\n<p style=\"text-align: justify;\">The notices submitted that \u201cthe delay in making the necessary disclosures under the PIT (Prohibition of Insider Trading) Regulations was due to inadvertence and without any malafide intention.\u201d<\/p>\n<p style=\"text-align: justify;\">The adjudicating officer, while rejecting the submission, stated that, \u201cthe disclosure requirements mandated under the respective regulations serve very important purposes. The stock exchange is informed so that the investing public will come to know of the position enabling them to stick on with or exit from the company. Timely disclosures of the details of the shareholding of the persons acquiring substantial stake is of significant importance as such disclosures also enable the regulators to monitor such acquisitions. In the instant matter, the acquisition of shares by the promoters through the preferential allotment having value of more than Rs 10 Lakh is of relevance from an investors\u2019 perspective\u201d.<\/p>\n<p style=\"text-align: justify;\">Therefore, considering the available records and facts and circumstances of the case at hand imposed a monetary penalty upon the Noticees under section 15 A (b) of the SEBI Act.[Viaan Industries Limited, In re, Order\/SBM\/KL\/2021-22\/12740-12742, decided on 28-07-2021]<\/p>\n<hr \/>\n<p><span style=\"color: #008080;\">Agatha Shukla, Editorial Assistant has reported this brief.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Securities Exchange Board of India (SEBI): Suresh B Menon, Adjudicating Officer, imposed a monetary penalty of Rs three lakh on Viaan Industries <\/p>\n","protected":false},"author":67011,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[46608,23124,29785,2563],"class_list":["post-251868","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-financial-racket","tag-insider-trading","tag-law","tag-SEBI"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SEBI | Financial Racket: Kundra, Shetty into murky waters again | Imposes fine for insider trading on Viaan Industries | SCC Times<\/title>\n<meta name=\"description\" content=\"Insider Trading\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2021\/07\/29\/insider-trading\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SEBI | Financial Racket: Kundra, Shetty into murky waters again | Imposes fine for insider trading on Viaan Industries\" \/>\n<meta property=\"og:description\" content=\"Insider Trading\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.scconline.com\/blog\/post\/2021\/07\/29\/insider-trading\/\" \/>\n<meta property=\"og:site_name\" content=\"SCC Times\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/scc.online\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-07-29T06:30:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/03\/security-exchange-board-of-india.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1330\" \/>\n\t<meta property=\"og:image:height\" content=\"887\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Editor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Editor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.scconline.com\/blog\/post\/2021\/07\/29\/insider-trading\/\",\"url\":\"https:\/\/www.scconline.com\/blog\/post\/2021\/07\/29\/insider-trading\/\",\"name\":\"SEBI | Financial Racket: Kundra, Shetty into murky waters again | Imposes fine for insider trading on Viaan Industries | SCC Times\",\"isPartOf\":{\"@id\":\"https:\/\/www.scconline.com\/blog\/#website\"},\"datePublished\":\"2021-07-29T06:30:30+00:00\",\"author\":{\"@id\":\"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/84e42bab48238baf12c7e33b3d9761fe\"},\"description\":\"Insider Trading\",\"breadcrumb\":{\"@id\":\"https:\/\/www.scconline.com\/blog\/post\/2021\/07\/29\/insider-trading\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.scconline.com\/blog\/post\/2021\/07\/29\/insider-trading\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.scconline.com\/blog\/post\/2021\/07\/29\/insider-trading\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.scconline.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"SEBI | Financial Racket: Kundra, Shetty into murky waters again | Imposes fine for insider trading on Viaan Industries\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.scconline.com\/blog\/#website\",\"url\":\"https:\/\/www.scconline.com\/blog\/\",\"name\":\"SCC Times\",\"description\":\"Bringing you the Best Analytical Legal News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.scconline.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/84e42bab48238baf12c7e33b3d9761fe\",\"name\":\"Editor\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/34e366be721c41333586de05faa13743195f5b142dcd7a015c6fabd2389521d0?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/34e366be721c41333586de05faa13743195f5b142dcd7a015c6fabd2389521d0?s=96&d=mm&r=g\",\"caption\":\"Editor\"},\"url\":\"https:\/\/www.scconline.com\/blog\/post\/author\/editor_4\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"SEBI | Financial Racket: Kundra, Shetty into murky waters again | Imposes fine for insider trading on Viaan Industries | SCC Times","description":"Insider Trading","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.scconline.com\/blog\/post\/2021\/07\/29\/insider-trading\/","og_locale":"en_US","og_type":"article","og_title":"SEBI | Financial Racket: Kundra, Shetty into murky waters again | Imposes fine for insider trading on Viaan Industries","og_description":"Insider Trading","og_url":"https:\/\/www.scconline.com\/blog\/post\/2021\/07\/29\/insider-trading\/","og_site_name":"SCC Times","article_publisher":"https:\/\/www.facebook.com\/scc.online\/","article_published_time":"2021-07-29T06:30:30+00:00","og_image":[{"width":1330,"height":887,"url":"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/03\/security-exchange-board-of-india.jpg","type":"image\/jpeg"}],"author":"Editor","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Editor","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.scconline.com\/blog\/post\/2021\/07\/29\/insider-trading\/","url":"https:\/\/www.scconline.com\/blog\/post\/2021\/07\/29\/insider-trading\/","name":"SEBI | Financial Racket: Kundra, Shetty into murky waters again | Imposes fine for insider trading on Viaan Industries | SCC Times","isPartOf":{"@id":"https:\/\/www.scconline.com\/blog\/#website"},"datePublished":"2021-07-29T06:30:30+00:00","author":{"@id":"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/84e42bab48238baf12c7e33b3d9761fe"},"description":"Insider Trading","breadcrumb":{"@id":"https:\/\/www.scconline.com\/blog\/post\/2021\/07\/29\/insider-trading\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.scconline.com\/blog\/post\/2021\/07\/29\/insider-trading\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.scconline.com\/blog\/post\/2021\/07\/29\/insider-trading\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.scconline.com\/blog\/"},{"@type":"ListItem","position":2,"name":"SEBI | Financial Racket: Kundra, Shetty into murky waters again | Imposes fine for insider trading on Viaan Industries"}]},{"@type":"WebSite","@id":"https:\/\/www.scconline.com\/blog\/#website","url":"https:\/\/www.scconline.com\/blog\/","name":"SCC Times","description":"Bringing you the Best Analytical Legal News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.scconline.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/84e42bab48238baf12c7e33b3d9761fe","name":"Editor","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/34e366be721c41333586de05faa13743195f5b142dcd7a015c6fabd2389521d0?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/34e366be721c41333586de05faa13743195f5b142dcd7a015c6fabd2389521d0?s=96&d=mm&r=g","caption":"Editor"},"url":"https:\/\/www.scconline.com\/blog\/post\/author\/editor_4\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":291835,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/05\/11\/treatment-of-bona-fide-trades-under-sebi-insider-trading-regulations\/","url_meta":{"origin":251868,"position":0},"title":"Treatment of Bona Fide Trades under SEBI Insider Trading Regulations","author":"Editor","date":"May 11, 2023","format":false,"excerpt":"by Armaan Patkar*","rel":"","context":"In &quot;Op Eds&quot;","block_context":{"text":"Op Eds","link":"https:\/\/www.scconline.com\/blog\/post\/category\/op-ed\/legal-analysis\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/MicrosoftTeams-image-127.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/MicrosoftTeams-image-127.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/MicrosoftTeams-image-127.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/MicrosoftTeams-image-127.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":271117,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/08\/03\/insider-trading-what-must-the-regulator-prove-balram-garg-v-sebi-a-case-comment\/","url_meta":{"origin":251868,"position":1},"title":"Insider Trading: What must the Regulator Prove?  Balram Garg v. SEBI: A case comment","author":"Bhumika Indulia","date":"August 3, 2022","format":false,"excerpt":"by Varghese George Thekkel\u2020","rel":"","context":"In &quot;Op Eds&quot;","block_context":{"text":"Op Eds","link":"https:\/\/www.scconline.com\/blog\/post\/category\/op-ed\/legal-analysis\/"},"img":{"alt_text":"Insider Trading","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/08\/17_MicrosoftTeams-image.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/08\/17_MicrosoftTeams-image.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/08\/17_MicrosoftTeams-image.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/08\/17_MicrosoftTeams-image.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/08\/17_MicrosoftTeams-image.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":223352,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/12\/18\/sebi-pc-jeweller-promoters-found-to-be-in-violation-of-insider-trading-regulations-impounded-issued-show-cause-notice\/","url_meta":{"origin":251868,"position":2},"title":"SEBI | PC Jeweller promoters found to be in violation of Insider Trading Regulations; Impounded &#038; Issued show-cause notice","author":"Bhumika Indulia","date":"December 18, 2019","format":false,"excerpt":"Securities Exchange Board of India (SEBI):\u00a0G. Mahalingam (Whole Time Member), issued an impounding order and issued show-cause notices against the\u00a0'Insiders'\u00a0and suspected entities who had traded in the scrip of PC Jeweller and found to be in violation of\u00a0the provisions of Sections 12A(d) and (e) of the SEBI Act and Regulations\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":250189,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/23\/preferential-allottees\/","url_meta":{"origin":251868,"position":3},"title":"SAT | SEBI exonerated preferential allottees, exit providers and LTP contributors from manipulation | SAT terms it \u2018cryptic\u2019","author":"Editor","date":"June 23, 2021","format":false,"excerpt":"Securities Appellate Tribunal (SAT): A Bench of Justice Tarun Agarwala SEBI(Presiding Officer) and M.T. Joshi (Judicial Member) allowed a few appeals and dismissed the others while hearing a group of appeals and termed the order cryptic, in so far as it exonerated the preferential allottees, exit providers and the LTP\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/SAT-MUMBAI.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/SAT-MUMBAI.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/SAT-MUMBAI.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/SAT-MUMBAI.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/SAT-MUMBAI.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":280888,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/01\/03\/evaluating-the-standard-of-evidence-used-in-insider-trading-cases\/","url_meta":{"origin":251868,"position":4},"title":"Evaluating the Standard of Evidence Used in Insider Trading Cases","author":"Bhumika Indulia","date":"January 3, 2023","format":false,"excerpt":"by Harsh N. Dudhe\u2020 and Pranay Bhardwaj\u2020\u2020","rel":"","context":"In &quot;Op Eds&quot;","block_context":{"text":"Op Eds","link":"https:\/\/www.scconline.com\/blog\/post\/category\/op-ed\/legal-analysis\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/01\/MicrosoftTeams-image-74.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":231900,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/07\/08\/the-indian-stock-market-saga\/","url_meta":{"origin":251868,"position":5},"title":"The Indian Stock Market Saga","author":"Bhumika Indulia","date":"July 8, 2020","format":false,"excerpt":"by Vini Gupta*","rel":"","context":"In &quot;Op Eds&quot;","block_context":{"text":"Op Eds","link":"https:\/\/www.scconline.com\/blog\/post\/category\/op-ed\/legal-analysis\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/07\/Stock-Market.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/07\/Stock-Market.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/07\/Stock-Market.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/07\/Stock-Market.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/07\/Stock-Market.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/251868","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67011"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=251868"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/251868\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=251868"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=251868"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=251868"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}