Asmita Patel Banned! SEBI Exposes ₹100 Crore Investment Scam

The Securities and Exchange Board of India (SEBI) has recently taken decisive action against financial influencer Asmita Patel, popularly known as the ‘She-Wolf of the Stock Market’ and the ‘Options Queen’. Patel, along with her associated entities, has been barred from accessing capital markets due to allegations of running unregistered investment advisory services. This move underscores SEBI’s commitment to safeguarding investors from unauthorized financial advisors.

Who is Asmita Patel?

Asmita Patel gained prominence as a financial influencer with a substantial online presence. She amassed over 526,000 subscribers on YouTube, 73,000 followers on Facebook, and 90,000 on Instagram. Through her platform, the Asmita Patel Global School of Trading (APGSOT), she offered various trading courses, including:

• Options Multiplier (OM)
• Master’s in Price Action Trading (MPAT)
• Let’s Make India Trade (LMIT)

These programs were marketed as educational resources aimed at empowering individuals with trading knowledge. However, SEBI’s investigation suggests that these courses served as a front for unauthorized investment advisory services.

The SEBI Investigation

SEBI initiated a probe following complaints from 42 investors who alleged that Patel and her associates were providing unregistered investment advice. The investigation revealed that APGSOT and its affiliates collected approximately ₹104 crore through various programs. Participants were reportedly lured with exaggerated promises of profits and were encouraged to pay substantial fees for what turned out to be minimal or ineffective trading education.

Further findings indicated that Patel and her team provided specific buy and sell recommendations via private Telegram channels, Zoom meetings, and emails. These activities were conducted without the necessary SEBI registration, violating established regulations. Additionally, participants were urged to open trading accounts with specific brokerage firms, suggesting potential conflicts of interest.

SEBI’s Actions and Directives

In response to these findings, SEBI has taken the following actions:

• Banned Asmita Patel, APGSOT, and associated entities from accessing capital markets.
• Impounded over ₹53.6 crore collected as fees from participants.
• Issued a show-cause notice demanding an explanation for the remaining ₹104.63 crore collected.
• Ordered the removal of all promotional content related to the unregistered advisory services from public platforms.

These measures aim to prevent further unauthorized advisory activities and to protect the interests of investors who may have been misled by Patel’s schemes.

Implications for Investors and the Financial Community

This incident serves as a cautionary tale for investors to exercise due diligence when seeking financial advice, especially from online influencers. It highlights the importance of verifying the credentials of financial advisors and ensuring they are registered with appropriate regulatory bodies. SEBI’s crackdown on unregistered advisors reinforces its dedication to maintaining the integrity of the financial markets and protecting investors from potential fraud.

Conclusion

The case of Asmita Patel underscores the necessity for stringent regulatory oversight in the realm of financial advisory services. As the digital landscape continues to evolve, both investors and regulators must remain vigilant against unauthorized and potentially harmful financial practices. SEBI’s proactive measures in this case exemplify its role in upholding market integrity and investor trust.