Cracks Down on Patel Wealth Advisors for Stock Market Manipulation
In a significant move, the Securities and Exchange Board of India (SEBI) has banned Rajkot-based Patel Wealth Advisors Private Limited and its four directors from participating in the stock market. The interim order, released after a detailed probe, cites fraudulent trading activities and market manipulation that generated illegal profits of ₹3.22 crore.
The company and its directors—Dennis Maheshbhai Patel, Kaushal Vasantrai Patel, and Minish Maheshbhai Patel—have been directed to return the unlawfully gained amount, which was made through misleading transactions across 173 women investors in 621 trades between January 2021 and January 2025.
Modus Operandi: Creating Market Confusion Through Fake Trades
The SEBI report outlines how Patel Wealth Advisors manipulated share prices by placing large orders at artificially high or low prices. This triggered false signals to other market participants, creating artificial demand or supply. The broking firm would then cancel these orders or make reverse trades to profit from the confusion.
This fraudulent activity was carried out not only in the cash segment but also extended to derivatives trading, involving shares of companies like Coffee Day Enterprises.
NSE Issued Warnings, But Activity Continued
Despite repeated notices from the National Stock Exchange (NSE), Patel Wealth Advisors allegedly continued their manipulative practices. SEBI noted that millions of shares were entered into the system with the intent to deceive and later cancelled before execution—clearly indicating intent to manipulate prices and mislead other investors.
Client Business Unaffected, But Market Participation Barred
While SEBI’s prohibitory order restricts the firm and its directors from trading or accessing the securities market, it clarified that client operations will not be affected.
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