Asmita Patel Penalized by SEBI for Illegal Investment Advisory

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 is seeking justification for disgorging an additional ₹104.6 crore, the total amount collected from investors as course fees.

Investigations revealed that Patel's institution was not merely offering stock market training but was actively providing stock and options recommendations, activities that require registration as investment advisors and research analysts. The probe was initiated following complaints from 42 participants, uncovering a scheme that encouraged individuals to trade in specific stocks and open trading accounts.

In its order, SEBI highlighted that Patel, along with her spouse Jitesh Patel, devised a scheme to lure students and investors into trading activities. Consequently, Asmita Patel, her institution, and all associated 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 recent crackdown on financial influencers, where it banned the use of live share price data for educational purposes to prevent disguised investment advice. The investigation found that Patel's school was issuing buy and sell recommendations via Telegram channels, violating regulatory guidelines.

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 clarified that filing for settlement does not halt regulatory proceedings.

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.

SEBI remains firm in its commitment to ensuring compliance and protecting investors from unregistered financial advisors. The regulator's actions underscore the importance of adhering to regulatory frameworks designed to maintain market integrity and investor trust.