The Financial Services and Markets Tribunal (FSMT) has found that Robin Chhabra and his friend, Sameer Patel committed market abuse when using inside information to carry out a series of profitable spread bets. The case was referred to the FSMT following an investigation carried out by the FSA into the activities of Mr Chhabra and Mr Patel. The FSA found that in 2004, Mr Chhabra, a research analyst at Evolution Securities Limited covering Ebookers plc and Eidos stocks, passed on confidential information to his friend, Mr Patel, who then used that information to place bets on Ebookers plc or Eidos stocks. The total benefit made by Mr Patel amounted to £85,541. The FSMT's decision confirms the FSA’s findings of market abuse. A separate hearing will be held to determine the appropriate action against Mr Chhabra and Mr Patel.
It is also useful to note that FSMT is to be transferred to the Upper Tribunal as of 6 April 2010 following the publication of the Transfer of Tribunal Functions Order 2010 (SI 2010/22).