SEBI Cracks Down on Patel Wealth Advisors for Alleged Spoofing

Market regulator SEBI has barred stockbroker Patel Wealth Advisors from trading in proprietary accounts, citing 'spoofing' activities that led to unlawful gains of Rs 3.22 crore. SEBI's interim order also restricts four directors from trading, with further investigations underway into 621 spoofing instances across 173 scrips.

Market watchdog SEBI has taken stern action against Patel Wealth Advisors, prohibiting it from trading in its proprietary account due to allegations of spoofing activities.

This interim order also targets four directors of the firm, preventing them from engaging in securities transactions after identifying 621 instances of spoofing that resulted in unlawful gains of Rs 3.22 crore.

SEBI's investigation revealed that these manipulative practices involved placing large, non-executable orders to create false market impressions, ultimately deceiving investors and causing price distortions.

(With inputs from agencies.)