SEBI v. Prashant J. Patel (fictitious backdated trades, Global Telesystems, 2022)
Judgment entered
Checked against the primary document on October 8, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, in a single reading of the order; an independent second reading of 60 SEBI records agreed on every field for 56, the four misses being penalty amounts; a later sample of 50 of the SEBI records added on 9 October agreed on every field for 46. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.
A SEBI whole-time member sanctioned the stockbroker Prashant J. Patel with a warning over fictitious and backdated trades in Global Telesystems shares in 2000, in light of the 20-year gap. No penalty or suspension was imposed.
The record
| Agency | SEBI (India) |
|---|---|
| Date filed | 2022-09-05 |
| Date resolved | 2022-09-05 |
| Court | SEBI whole-time member |
| Status | judgment |
| Asset class | equities |
| Instruments | Global Telesystems Ltd shares |
| Venue | NSE |
| Criminal parallel | No |
| Bars imposed | Warned to be more careful in future dealings as a stockbroker |
| Defendants | Prashant J. Patel |
| Techniques |
What was ordered
- Civil penalty
- —
- Disgorgement
- —
- Prejudgment interest
- —
- Total relief
- —
- Alleged gain
- —
What is alleged to have happened
The final order was issued on 5 September 2022 by a whole-time member of the Securities and Exchange Board of India under the Intermediaries Regulations. The noticee was Prashant J. Patel, a stockbroker and trading member of the NSE and the Metropolitan Stock Exchange. A designated authority had recommended a censure.
The proceedings arose from an October 2002 complaint by Tata Finance Ltd, which alleged that fictitious and backdated sales and purchases of shares of Global Telesystems Ltd and of an unlisted company later merged into it were executed between Niskalp Investment and Trading Ltd and Tata Finance between September and December 2000. The noticee was one of three brokers said to have helped, and the trades were connected with a Tata Finance rights issue.
The order considers the allegations under the PFUTP Regulations and the broker code of conduct. Because the matter was more than 20 years old, subscribers to the rights issue had twice been offered a chance to exit, and a Securities Appellate Tribunal outcome had left two other parties in the same episode with only a warning, the whole-time member chose the lightest sanction.
He warned the noticee to be more careful in future and to put proper checks and balances in place. There is no penalty, suspension or bar.
The record does not show any appeal or what the trades earned the clients. It describes no criminal case. This record has no technique tag because the conduct alleged, fabricated trades, fits none of the library's manipulation techniques.
This library tags the matter as not mapped to any manipulation technique. The tagging is ours, not the regulator's.
For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the order.
Timeline
- 2022-09-05 SEBI order
Primary documents
Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.