The Securities and Exchange Board of India (SEBI) has taken decisive action against Asmita Patel, her Global School of Trading, and four associated entities for allegedly providing unregistered investment advisory services under the guise of educational courses. SEBI has ordered the impounding of ₹53.67 crore and has also sought justification for disgorging over ₹104 crore, the total amount collected from unsuspecting investors.
SEBI’s investigation revealed that Patel’s institution was not merely offering stock market training but was actively providing stock and options recommendations, a service that falls under registered investment advisors and research analysts. The probe was initiated following complaints from 42 students, exposing a structured scheme that encouraged participants to trade in specific stocks and open trading accounts.
In its 128-page order, SEBI’s whole-time member Kamlesh Varshney highlighted that Patel, along with her spouse Jitesh Patel, devised a scheme that lured students and investors into trading activities. As a result, Asmita Patel, her institution, and all six involved entities have been barred from trading in the securities market until further notice. They are also directed to cease offering unregistered investment advisory and research analyst services.
This action follows SEBI’s January 29 crackdown on financial influencers (finfluencers), where it banned the use of live share price data for educational purposes, targeting individuals who disguise investment advice as education. SEBI’s investigation found that Patel’s school was issuing buy and sell recommendations via Telegram channels, violating regulatory guidelines.
The show-cause notice issued by SEBI makes it clear that the institution was providing investment advisory services for a fee, disguised as education. SEBI has further instructed Patel and her associated entities to remove all related websites, videos, and promotional content to prevent further violations.
Despite the ongoing investigation, Patel’s institution has filed a settlement application. However, SEBI has clarified that filing for settlement does not halt regulatory proceedings. The regulator remains firm on its stance to ensure compliance and protect investors from unregistered financial advisors.
Known as the “she-wolf” and “options queen”, Patel leveraged her strong online presence, boasting 526,000 YouTube subscribers, 90,000 Instagram followers, and 73,000 Facebook followers. Through her platform, she promoted paid courses such as ‘Let’s Make India Trade’ (LMIT), ‘Master’s in Price Action Trading’ (MPAT), and ‘Options Multiplier’ (OM), which are now under SEBI’s scrutiny.
