Asmita Patel, a YouTuber and self-proclaimed ‘She Wolf of the stock market,’ has found herself at the center of a major crackdown by India’s market regulator, Sebi. Portraying herself as the ‘options queen,’ Patel has claimed to have mentored over one lakh students and investors worldwide. But now, Sebi has raised serious concerns over her business practices.
Sebi, through an interim order cum show-cause notice passed on February 6, has barred six entities from the capital market. These include Asmita Patel Global School of Trading Pvt Ltd (APGSOT), Asmita Jitesh Patel, Jitesh Jethalal Patel, King Traders, Gemini Enterprise, and United Enterprises. The watchdog has also asked them to explain why another Rs 104.63 crore collected in fees should not be seized.
What led to the ban?
At the heart of the controversy is Sebi’s claim that Patel and her associated entities were running an unregistered investment advisory service under the guise of trading courses. According to the order, individuals enrolling in these courses were allegedly misled with exaggerated profit promises and pressured into paying hefty fees for what Sebi describes as subpar or ineffective trading education.
Sebi has directed the implicated parties to return Rs 53 crore collected from course participants. But that’s just the tip of the iceberg. According to complaints, Patel has amassed assets worth Rs 140 crore through her so-called proprietary trading system.
The regulator suggests that each of the six entities played specific roles in what appears to be a carefully orchestrated scheme that, prima facie, violates Sebi’s regulations. The order further claims that Patel and her associates encouraged students and investors to trade in particular stocks and even directed them to open trading accounts with a specific brokerage firm.
‘Not a one-time arrangement to route funds’
Sebi also flagged a suspicious pattern in how the course fees were collected. Participants were allegedly instructed to pay through entities such as King Traders, Gemini Enterprise, and United Enterprises. According to the regulator, this was not an isolated incident but a recurring practice used by APGSOT to funnel funds through various entities.
The regulator has ruled that the six entities are jointly and severally liable for impounding Rs 53.67 crore collected from participants for courses like LMIT (Let’s Make India Trade), MPAT (Master’s in Price Action Trading), and Options Multiplier (OM).
As a result, Patel and her associates have been ordered to cease all unregistered investment advisory services and any activities that might be construed as fraudulent within the securities market. The ruling also prohibits them from presenting themselves as investment advisors or research analysts.
However, Sebi has been careful to note that these findings are preliminary. The implicated parties still have the opportunity to present their defense. As of now, Patel has yet to publicly respond to the allegations, but the financial community is watching closely to see how this high-profile case unfolds. — with PTI