section_path: Alleged stock manipulation
section_name: Alleged stock manipulation
paragraph_text: Alleged stock manipulation
  
  Between January and June 2011, 22 entities, including Vijay Rupani HUF, bought and sold shares of Sarang Chemicals in an alleged pump-and-dump scam. On 27 October 2017, the Securities and Exchange Board of India (SEBI) imposed penalties on all 22 entities on the charges of artificial volume creation, market manipulation, and "getting an unlawful or unfair gain," in violation of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market). Following an investigation, SEBI discovered that the group had bought 2,76,97,860 shares at 32.97% of the company's market value before selling 7,24,08,293 shares at 86.18% of the company's market value. SEBI levied fines of ₹ 6.9 crores across all entities, with Rupani HUF being asked to pay ₹ 15 lakhs within 45 days of the order. SEBI noted that the order was ex parte as the entities involved did not respond to the show-cause notice within the stipulated time.
  
  Rupani denied any wrongdoing. In his defence, his office alleged that the HUF had purchased shares worth ₹ 63,000 in 2009 and sold them for ₹ 35,000 in 2011, thus incurring a loss, not a profit. On 8 November 2017, the Securities Appellate Tribunal (SAT) set aside the SEBI order, noting that it had been issued without giving a hearing to those involved. No new public hearing or ruling has been announced, effectively closing the case.
  
  Between January and June 2011, 22 entities, including Vijay Rupani HUF, bought and sold shares of Sarang Chemicals in an alleged pump-and-dump scam. On 27 October 2017, the Securities and Exchange Board of India (SEBI) imposed penalties on all 22 entities on the charges of artificial volume creation, market manipulation, and "getting an unlawful or unfair gain," in violation of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market). Following an investigation, SEBI discovered that the group had bought 2,76,97,860 shares at 32.97% of the company's market value before selling 7,24,08,293 shares at 86.18% of the company's market value. SEBI levied fines of ₹ 6.9 crores across all entities, with Rupani HUF being asked to pay ₹ 15 lakhs within 45 days of the order. SEBI noted that the order was ex parte as the entities involved did not respond to the show-cause notice within the stipulated time.
  
  Rupani denied any wrongdoing. In his defence, his office alleged that the HUF had purchased shares worth ₹ 63,000 in 2009 and sold them for ₹ 35,000 in 2011, thus incurring a loss, not a profit. On 8 November 2017, the Securities Appellate Tribunal (SAT) set aside the SEBI order, noting that it had been issued without giving a hearing to those involved. No new public hearing or ruling has been announced, effectively closing the case.