New Delhi: The Congress on Thursday sought the immediate resignation of Gujarat chief minister Vijay Rupani, arguing that he cannot lead the BJP in the state elections after the Securities and Exchange Board of India (Sebi) slapped a penalty on his firm for alleged malpractices.

Sebi will, however, pass a fresh order in the case after its penalty of Rs 6.91 crore against Rupani and the others was set aside by the Securities Appellate Tribunal.

The tribunal set aside the penalty order, dated October 27, after hearing an appeal filed by Akash Harishbhai Desai, one of the 22 entities penalised by Sebi for alleged manipulative trading in the shares of Saran Chemicals Ltd between January and June 2011.

In a two-page order dated November 8 and published on its website on Thursday, the tribunal said: "Sebi shall pass fresh order after giving an opportunity of hearing to all the parties."

#The market regulator had earlier penalised "Rupani's HUF (Hindu Undivided Family)" for "manipulative trades" in shares of a firm called Sarang Chemicals Ltd.

Congress communications chief Randeep Surjewala said: "Sebi has looked into only one aspect of wrongdoing. If you analyse the entire operations, there is a case for criminal offence too. It could be a case of insider trading also."

Surjewala added: "Sebi, in its order, recalls Rupani refused to reply to notices. We want to ask whether any insider trading took place and whether any benefits, monetary or otherwise, were exchanged.

What is the connection of the Rupani-owned share trading firm Rasiklal & Sons with Sarang Chemicals Ltd? If any, (then this) and other entities also need to be investigated."Congress vice-president Rahul Gandhi promptly tweeted: " Na khaoonga na khane dunga ki kahani/Shah-zada, Shaurya aur Vijay Rupani."

He was referring to Prime Minister Narendra Modi's claim of zero tolerance on corruption in the context of allegations against BJP chief Amit Shah's son Jay, national security adviser Ajit Doval's son Shaurya and Rupani.

Congress spokesperson Akhilesh Pratap Singh said: "The chief minister should tender his resignation or the Prime Minister should sack him. Otherwise, we should say ease of doing business (conditions apply) - only for the friends and family of the BJP."

He added: "India is witnessing a new baap-beta-beti culture of favouritism, wrong-doing and malpractices: Amit Shah-Jay Shah, Ajit Doval-Shaurya Doval, Vasundhara Raje-Dushyant Singh, Raman Singh-Abhishek Singh, Prem Kumar Dhumal-Anurag Thakur, Anandiben Patel-Anar Patel and many more."