CONFIRMATORY ORDER IN THE MATTER OF M/S PATEL WEALTH ADVISORS PRIVATE LIMITED

What is this order about?

This order concerns M/s Patel Wealth Advisors Private Limited and its associated individuals for allegedly engaging in order spoofing in the securities market, which SEBI found to be a violation of securities regulations.

Who it concerns

M/s Patel Wealth Advisors Private Limited, Denish Maheshbhai Patel, Mitul Umedlal Vora, Kaushal Vasantrai Patel, Minish Maheshbhai Patel

What was found or directed

• SEBI found that M/s Patel Wealth Advisors Private Limited engaged in order spoofing by placing large artificial buy/sell orders at prices significantly away from market prices, then cancelling them after executing opposite-side trades.
• SEBI calculated unlawful gains of INR 3,22,62,367.05 from spoofing activities.
• SEBI ordered the impounding of INR 3,22,62,367.05 as unlawful gains, to be deposited in a fixed deposit account with SEBI holding a lien.
• M/s Patel Wealth Advisors Private Limited is prohibited from dealing in securities in its proprietary account.
• Denish Maheshbhai Patel, Mitul Umedlal Vora, Kaushal Vasantrai Patel, and Minish Maheshbhai Patel are restrained from accessing the securities market and prohibited from dealing in securities.
• Banks and depositories are directed to restrict debits from the noticees' accounts except for depositing the impounded amount.
• Noticees must provide a full inventory of their assets within 15 days.

Points worth noting

• The unlawful gains calculated were INR 3,22,62,367.05 (approximately INR 3.23 crore).
• The order specifies that the directions regarding account restrictions will cease once the impounded amount is deposited.