SEBI: Two big decisions in 30 minutes- first new rules were issued and then a ban was imposed on 4 directors of the company!

News Topical,Digital Desk : Stock market regulator SEBI announced the first new rules on Monday. Immediately after this, the company has taken action against 4 directors of a company. All four people have been banned from the stock market with immediate effect. SEBI has taken this step after they were found involved in an alleged fraudulent trading activity called 'order spoofing'.

First decision- Market regulator SEBI has changed the rules for margin collection for brokers and clients working in the stock market. According to the new rules, now it will be necessary to collect the above margin (margin other than VaR and ELM) by the settlement day. Earlier, brokers used to get time till T+2 day to collect the remaining margin (except VaR and ELM) from the clients. Now because the settlement cycle for all the shares in the market has become T+1, SEBI has changed the rule and said that all the remaining margins will have to be collected from the clients by the day of settlement, that is, the entire margin should be received by the day the transaction of shares is completed.

Second decision-

SEBI's investigation found that PWA did spoofing 621 times in 173 shares between January 2021 and January 2025. Placing a big order just for show, there is no intention to execute it, and on the other hand making real deals. Later, the fake order is cancelled. This creates the illusion of fake demand or supply in the market, and small investors get misled. SEBI's action PWA and its directors have been banned from doing business in the securities market. Also, SEBI has ordered to impound illegal earnings of ₹ 3.22 crore. SEBI clearly said that such fraud has harmed the fairness of the market and the credibility of prices. SEBI will investigate this matter more deeply. SEBI also said that it has now developed technology to catch such complex and large-scale manipulation in the order book. By taking strict action against Patel Wealth Advisors, SEBI has given the message that any kind of fraud will not be tolerated in the market. SEBI is constantly increasing surveillance for the safety of investors.

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