New Delhi, Nov 9 (India Today): The Securities and Exchange Board of India (SEBI) has penalised 22 entities, including Gujarat Chief Minister Vijay Rupani's Hindu Undivided Family (HUF), which has been asked to pay a Rs 15 lakh fine for manipulative trading through a listed firm called Sarang Chemicals.

According to SEBI's order on its website posted on October 27, the alleged manipulative transactions by Rupani were done between January and June, 2011. He took charge as Gujarat Chief Minister in 2016.

Rupani has been asked to pay the penalty within 45 days. SEBI has said that Rupani's HUF and 17 other entities "had indulged into artificial volume rise/creating misleading appearance of market/getting unlawful or unfair gain."

What the order said

"The noticee (Rupani HUF) contended that the CD (compact disk) attached to SCN is damaged and it is unable to open the same. Considering the request of the noticee, another CD was sent to him vide communique, dated May 25, 2016, and informed the noticee number 18 that in case it is still unable to open the CD then, its duly authorised person may collect the same from office of undersigned with prior intimation. It was also stated in said communique to provide its e-mail ID. Vide letter dated June 13, 2016, the noticee requested for keeping in abeyance the proceedings till Mr Vijay Rupani recovers. As per medical certificates attached with said letter suggested for rest of eight weeks to Vijay Rupani from May 18, 2016, however, no reply towards the SCN has been received from it/him till date," the order said.

SEBI, which is the capital market regulator, has imposed an overall penalty of Rs 6.9 crore on 22 entities, which the investigation revealed were "connected or related".

In May 2016, SEBI had issued a common show cause notice to the 22 entities, alleging violations under SEBI Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) relating to the securities market.