Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has imposed penalties on 22 entities including Gujarat Chief Minister Vijay Rupani's Hindu Undivided Family (HUF), for 'manipulative trading'.

SEBI has imposed a penalty worth Rs 6.9 crore on all entities.

The Gujarat Chief Minister’s HUF has been accused of manipulative trading through a company called Sarang Chemicals.

The market regulator has ordered Rupani's HUF to pay Rs 15 lakh, while three other individuals have been asked to deposit Rs 70 lakh each or more.

SEBI has levied a penalty of Rs 8 lakh on the two brokers who are part of the 22 entities.

The Sebi order pertains to manipulative trading between January 2010 to June 2011. The order accuses HUF of price manipulation, misleading appearance and creating fake volumes in the shares of Sarang Chemicals, said an Indian Express report.

HUF and 17 others “had indulged into artificial volume rise/creating misleading appearance of market/getting unlawful or unfair gain.” According to the Sebi order, these 21 “related” entities purchased shares of Sarang Chemicals, which accounted for 33 per cent of the market value. These shares when sold later summed up to 86 per cent of the market value.

“During investigations, 21 entities/Noticee(s) “Group” were identified as connected/related through common address, telephone number, off-market transfers of shares and family members etc. Investigation Report (IR) revealed that the Group/Noticee(s) had bought 2,76,97,860 shares i.e. 32.97% of the market volume (8,40,17,121 shares) and sold 7,24,08,293 shares i.e. 86.18% of market volume during the investigation period,” Sebi said in its order.

It further said, “Such pattern of trading clearly reveals the ulterior/malafide intent and certainly such activities of noticee numbers 1-18 & 20 is in violation of regulation 3 (a) to (d), 4 (1) & 4 (2) (a), (b) & (e) of the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations.”

Rupani was unavailable for any comments.