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New Indian Express
28-04-2025
- Business
- New Indian Express
Sebi bars Rajkot-based stock broker, 4 directors from market for order spoofing
Capital markets regulator Sebi on Monday debarred Rajkot-based stock broker Patel Wealth Advisors (PWA) and its four directors from dealing in the securities market for alleged order spoofing and directed to impound `3.22 crore of illegal gains made by them. In market parlance, order spoofing is an illegal and deceptive practice wherein one places a trade order with the intent to cancel it before execution and simultaneously executes trades on the opposite side, leading to price manipulation. The regulator in an order noted that PWA continued to indulge in unfair trade practices despite repeated show-cause notices and initial proceedings by the NSE. In an ex-parte interim order, the Sebi directed to impound `3.22 crore illegal gains made by them. Sebi said it will undertake a probe into the matter. PWA claims to be in operations for 25 years and its four directors banned by the regulator are Denish Maheshbhai Patel, Mitul Umedlal Vora, Kaushal Vasantrai Patel and Minish Maheshbhai Patel. 'Order spoofing is a manipulative, fraudulent and unfair trade practice employed by PWA to deceive other market participants and profit from price fluctuations they induced on unwary investors. This practice distorts prices and undermines efficiency of market,' noted Sebi whole-time member Kamlesh Varshney in the 41-page interim order. It found PWA was involved in spoofing activity in both cash and derivatives segments across 173 scrips between January 2021 and January 2025. Their activity resulted in 621 unique spoofing instances. At its peak, PWA's phantom orders constituted 90% of pending order book in certain stocks, an indicator of the extent of market distortion.
Time of India
28-04-2025
- Business
- Time of India
Sebi slams spoofing scam in 173 stocks, orders Rs 3.22 crore seizure from Patel Wealth Advisors, directors
Sebi order spoofing: Patel Wealth Advisors and its directors face Sebi action for spoofing trades, leading to Rs 3.22 crore in unlawful gains and a ban from market access. Sebi order spoofing: Sebi ordered the impounding of Rs 3.22 crore from Patel Wealth Advisors and its directors for order spoofing across 173 scrips, also barring them from securities markets. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Market regulator Securities and Exchange Board of India (Sebi) on Monday ordered impounding of Rs 3.22 crore from a stock broking company and its four directors after finding them to have indulged in "order spoofing" and making unlawful gains. In the interim order, the market watchdog also barred the company and its directors from accessing the securities alleged order spoofing was followed by the company over 292 scrip contract days spread over 173 different spoofing is a type of manipulative trading activity which involves placing bid or ask orders, with the intent of cancelling the said orders before execution while simultaneously executing trades on the opposite side of the book. The side (i.e. buy or sell) on which such large orders are placed and cancelled is known as 'Spoof' side and the suspect trader involved in such kind of activity is known as spoofer."An amount of INR 3,22,62,367.05, being the total unlawful gain earned from the alleged violations, shall be impounded, jointly and severally from the Noticees and the Noticees are directed to open fixed deposit account(s) in any Noticees' name so as to credit or deposit the aforesaid amount of unlawful gains with a lien marked in favour of SEBI and the amount kept therein shall not be released without permission from SEBI," a 41-page order company in question is Patel Wealth Advisors Private Limited (PWAPL) and its directors are Denish Maheshbhai Patel, Mitul Umedlal Vora, Kaushal Vasantrai Patel and Minish Maheshbhai Patel. Barring Minish, all others are promoters as interim order came following a probe into the trading activities of Patel Wealth Advisors for the period between January 1, 2022 and January 31, 2025 to ascertain as to whether its trading activities were in contravention of its order noted that the alleged illegal activities persisted despite repeated letters and communication from NSE even as the exchange initiated proceedings against PWAPL by issuing an SCN dated May 16, 2023."PWAPL was well aware of its alleged spoofing activities but despite the issuance of SCN by NSE, PWAPL has brazenly continued to indulge in unfair trade practices as far as till January 2025," the order noted."The order spoofing is a manipulative, fraudulent and unfair trade practice employed by PWAPL to deceive other market participants and profit from price fluctuation they induced unwary investors in the market. This practice distorted market prices and undermined market efficiency," the order said further.
