SEBI confirms ₹3.22 crore unlawful gain from order spoofing by Patel Wealth Advisors

This is a confirmatory order by SEBI regarding M/s Patel Wealth Advisors Private Limited (PWAPL) and four individuals, confirming interim directions issued for alleged order spoofing (placing artificial orders to manipulate prices) in the securities market.

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

What SEBI found or ordered

• SEBI confirmed the interim order dated April 28, 2025.
• SEBI found PWAPL engaged in order spoofing, earning an unlawful gain of INR 3,22,62,367.05.
• The amount of INR 3,22,62,367.05 is to be impounded jointly and severally from the noticees via fixed deposit accounts with a lien in favor of SEBI.
• PWAPL is prohibited from buying, selling, or dealing in securities in its proprietary account.
• The four individual noticees are restrained from accessing the securities market and prohibited from dealing in securities.
• Banks and depositories are directed to prevent debits from the noticees' accounts (excluding client funds/securities) without SEBI permission.
• Noticees were directed to provide a full inventory of assets within 15 days of the interim order.

Also in the document

• The order confirms that the spoofing activity occurred in both the Equity and Equity Derivatives segments.
• SEBI noted that while 'spoofing' is not explicitly defined in the PFUTP Regulations, the actions violated provisions of the SEBI Act and PFUTP Regulations.
• The order distinguishes between the proprietary accounts of the broker (PWAPL) and its client accounts, exempting client funds/securities from the restraint directions.