On 11 January 2010 the Financial Services and Markets Tribunal (FSMT) published its decision in the case of Robin Chhabra and Sameer Patel and the Financial Services Authority (FSA) concerning the FSA’s earlier findings of market abuse against Mr Chhabra and Mr Patel. The case was heard in October 2009 and referred to a Decision Notice made by the FSA in December 2008 which stated that the FSA had decided to impose a penalty on both Mr Chhabra and Mr Patel for market abuse and to prohibit both of them from performing any function in relation to any regulated activity carried on by any authorised person on the grounds that they are not fit and proper persons.
The market abuse took place in the summer of 2004 when Mr Chhabra was a research analyst at Evolution Securities Limited and Mr Patel was an experienced spread better who regularly placed bets on football matches and the FTSE 100 indices. On three separate occasions, Mr Chhabra, having become aware of confidential information about forthcoming announcements relating to Ebookers plc and Eidos plc, informed Mr Patel of the information, following which Mr Patel placed bets on relevant stocks, making a profit of £85,541. Both Mr Chhabra and Mr Patel were approved persons at the time.
The FSMT confirmed the FSA’s findings that both Mr Chhabra and Mr Patel had engaged in market abuse by virtue of the fact that Mr Patel placed bets on the basis of restricted information not generally available which was disclosed to him by Mr Chhabra.