Скачать или смотреть How SEBI caught Broker Defrauding Retail Traders & Penalized ₹3.22 Crore? | Spoofing Scam Explained

There are scams in the stock market that you’ll never spot on your screen. They look like “normal” trading activity but are actually engineered traps. One such technique is spoofing — placing massive fake buy or sell orders only to cancel them later. The purpose?

To create an illusion of demand or supply, push market sentiment in a certain direction, and quietly profit while retail traders are left with losses.

In this video, I break down how Patel Wealth Advisors Ltd., a SEBI-registered broker from Gujarat, was caught running this very playbook. Over 292 trading days across 173 different stocks, they repeatedly placed huge fake orders, made it look like liquidity was flooding in, and then cancelled those orders once retail traders had jumped in.

The real trades were done in smaller, strategic positions near the price — generating quick gains.

One example straight from SEBI’s order: in Coffee Day Enterprises, they placed 548 buy orders showing crores worth of shares, but nearly all of them were parked far away from the last traded price — never meant to be executed.

At the same time, a few small orders near the price were allowed to go through, creating the illusion of heavy demand. Once retail traders reacted, the big orders vanished. This cycle was repeated again and again.

SEBI pieced the puzzle together by analysing detailed order logs, timestamps, and cancellation patterns.

They saw that almost 99% of the large order quantities never executed, yet every time they were placed, market mood shifted. By linking client accounts and profit-booking accounts, SEBI confirmed that the manipulation was orchestrated from within the broker’s own ecosystem.

The result? Patel Wealth Advisors and four of its directors were restrained from the market, their bank and demat accounts frozen, and they now face disgorgement of over ₹3.22 crore in unlawful gains along with further penalties under PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations and the SEBI Act, 1992.

Why does this matter to you?

Because when you enter a trade based on market depth, momentum, or “liquidity walls,” you might not realize the signals are fake. Spoofing makes traders believe there’s demand or supply that doesn’t exist — and by the time reality shows up, you’re already on the losing side.

This video is not just about one broker. It’s about understanding the systemic gaps that allow invisible scams to operate. It’s about why retail traders must stay alert and why regulators must continue improving surveillance, transparency, and education.

Watch till the end to see exactly how this scam worked, how SEBI caught it, and what it means for all of us trading in Indian markets. I’ll also leave a link to SEBI’s official order in the description so you can read the details yourself.

If you’ve ever seen market depth suddenly vanish after you placed a trade, share your experience in the comments — your story could help someone else avoid the same trap.

Have you been scammed? File your complaint at - https://aseemjuneja.in/

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0:00 - 1:39 Spoofing Scam Intro
1:40 - 2:19 How Traders are Misled
2:20 - 4:05 How Spoofing Scam is done?
4:06 - 4:50 Flash Crash Spoofing Case Study
4:51 - 6:03 Spoofing Case in indian Market
6:04 - 7:52 Details of Patel Advisors Scam
7:53 - 9:59 Market Depth Manipulation
10:00 - 10:31 How SEBI caught this Spoofing?
10:32 - 10:56 Intent behind the Scam
10:57 - 11:36 Pattern recognition in Order Placement
11:37 - 12:14 Linkage to Single Entity
12:15 - 12:37 Spoofing Scam Value
12:38 - 13:06 Regulations Violated
13:07 - 13:52 Penalties Levied on Patel Wealth
13:53 - 15:08 How Spoofing Fools You?