Order Spoofing: SEBI bans 4 directors from doing business in the market, forfeit will be ₹3.22 crore illegal earnings

New Delhi| Market regulator Securities and Exchange Board of India (SEBI) barred stock broking company Patel Wealth Advisors (PBduBuAA) and its 4 directors from trading in the market due to their involvement in order spoofing rigging. These include Denish Maheshbhai Patel, Mitul Umedlal Vora, Kaushal Vasant Rai Patel and Minish Maheshbhai Patel.

Allegations of order spoofing, manipulation of share prices in 621 cases
SEBI has also ordered confiscation of illegal earnings of Rs 3.22 crore of directors. The company is accused of manipulating share prices by order spoofing tax in 621 cases. Let us tell you that in order spoofing, a trader deliberately places an order which he cancels before settling it and at the same time trades on the other side.

Earned profits from fluctuations in prices in the market, misled people
Patel Wealth Advisors used it to mislead others and profit from price fluctuations in the market, SEBI whole-time member Kamlesh Varshney said in a 41-page order. This created chaos in market prices and weakened the market.

What is order spoofing
Order spoofing is an illegal trading activity, in which large-scale purchase or sale orders of shares are placed. Orders are intended to be canceled before execution, while at the same time trades are executed on the opposite side of the order book. Such orders are called spoof sides, and the merchant involved is known as a spoofer. This practice creates the illusion of incorrect demand or supply in the market, causing price fluctuations and harm to unsuspecting investors.