SEBI Bans Patel Wealth Advisors, Directors For Order Spoofing

New Delhi: The Securities and Exchange Board of India (SEBI) on Monday took strict motion towards stockbroker Patel Wealth Advisors (PWA) and its 4 administrators for his or her involvement in unlawful buying and selling practices. The marketplace regulator barred them from dealing within the securities marketplace and ordered the restoration of Rs 3.22 crore in unlawful beneficial properties.

SEBI discovered that PWA used to be concerned with ‘order spoofing’, a fraudulent way the place huge purchasing or promoting orders are positioned so that you could cancel them earlier than execution. Meanwhile, trades are made at the reverse facet to benefit from value actions caused by means of the ones false orders.

In its intervening time order issued on Monday, SEBI defined that even supposing order spoofing were noticed previous on a smaller scale in India, this used to be the primary time the sort of huge and common operation used to be exposed.

SEBI’s whole-time member Kamlesh Varshney mentioned that PWA’s movements misled different traders and disturbed the honest functioning of the marketplace. He emphasized that proceeding such practices would hurt traders’ pursuits and harm agree with within the inventory marketplace.

“Order spoofing is a manipulative, fraudulent and unfair trade practice employed by PWA to deceive other market participants and profit from price fluctuation they induced on unwary investors in the market. This practice distorted market prices and undermined market efficiency,” Varshney discussed.

The investigation confirmed that PWA’s spoofing actions came about in each the money and derivatives segments over a length of 3 years, between January 2021 and January 2025. According to SEBI’s findings, PWA manipulated 173 shares throughout 292 buying and selling days, on occasion more than one instances in one day. In general, they performed 621 distinctive spoofing cases.

The manipulation concerned putting huge pretend orders a long way from the present marketplace value to create a false sense of call for or provide. Once the costs moved of their favour, PWA temporarily done trades at the reverse facet and later canceled the massive pretend orders, making wrongful earnings.

The regulator additionally highlighted that regardless of repeated warnings and complaints from the National Stock Exchange (NSE), PWA endured with unfair buying and selling practices. SEBI discussed that it has now advanced new ways to discover such advanced manipulations out there. It additionally mentioned {that a} detailed investigation will observe.