Gujarat CM Rupani in damage control exercise over SEBI orders

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Gujarat Global News Network , Ahmedabad

Gujarat Chief Minister Vijay Rupani has launched a campaign on twitter and has written to media pointing out that the controversial order of SEBI imposing fine of Rs 15 lakh on his HUF firm Sarang Chemical has been set aside by The Securities Appellate Tribunal(SAT). He has been circulating SAT order in media.

SEBI had on October 27 imposed fine on the ground of price manipulation, misleading appearance and creating fake volumes in the shares of Sarang Chemicals. On November 8 SAT set aside SEBI order and gave the party three week time to reply on SEBI charges. Sebi  had imposed penalties on 22 entities, including Gujarat Chief Minister Vijay Rupani’s Hindu Undivided Family (HUF), for “manipulative trading”.

This makes it clear that Rupani and others are yet to be cleared of the charges.

Rupani said that One of those persons against whom such an ex-parte order was passed, approached SEBI Tribunal by filing an Appeal. Having found that none of the persons against whom the SEBI officer has passed an order is even heard, the Tribunal has quashed and set aside the said order.

The Securities Appellate Tribunal (SAT) has quashed and set aside the order passed by SEBI regarding transactions related to trading of shares of Sarang Chemicals.

The transaction done by Vijay Rupani HUF is just 0.1% of the total transaction. So, no major gains have been made by him through speculation.

Vijay Rupani HUF purchased shares worth about Rs. 63,000 only in 2009. It was sold in 2011 at about Rs. 35,000/- thus incurring a loss of about Rs. 28,000/-.

In case of speculation of shares, transactions worth crores of rupees take place. However in this case, the one-time transaction has nothing to do with huge profits or speculation.

Vijay Rupani HUF had purchased shares through stock exchange in demat account depositing transaction tax and had sold the shares in 2011 in a single transaction.

There is neither any violation of guidelines of SEBI, nor it is a case of illegal financial transaction.

After six years, one officer of SEBI passed an order against 22 persons imposing penalty, without even hearing anyone of them, including Vijay Rupani HUF.

For news in Hindi see our news daily Chaupal Chronicle

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