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In a significant move against unregistered investment advisory services, the Securities and Exchange Board of India (SEBI) has issued an interim order against Asmita Patel Global School of Trading Pvt Ltd (APGSTPL), its director Asmita Patel, her husband Jitesh Jethalal Patel, and associated entities. The market regulator has impounded Rs 53.67 crore, alleging that Patel and her firm were running an illegal investment advisory business under the guise of an educational institution.
SEBI’s Findings: Investment Advice Disguised as Education
Kamlesh C Varshney, Whole-Time Member (WTM) of SEBI, issued a hard-hitting order detailing how Patel and her associates allegedly lured students and investors into trading specific stocks.
“Examination revealed that, prima facie, APGSTPL, along with Ms. Patel and her husband Jitesh, devised a scheme where students, investors, and participants were lured to trade in specific stocks and told to open trading accounts with ABC Ltd. Recommendations of buy and sell of specific securities were provided and uploaded on Telegram channels owned by the company. The acts of APGSTPL make it evident that it was providing investment advice and research analyst services to students, investors, and participants for a consideration under the pretext of imparting education,” Varshney stated.
SEBI found that the company collected fees through intermediaries—King Traders (proprietor: Sagar Dhanjibhai), Gemini Enterprise (proprietor: Suresh Parmashivam), and United Enterprises (proprietor: Jigar Rameshbhai Dawada). The participants were instructed to transfer course fees to their bank accounts.
“This arrangement was not a one-time instance but a regular practice. Considering the material on record, I note that all noticees are jointly and severally liable for impounding of the proceeds to the tune of Rs 53.67 crore generated from the amounts collected by noticees as fees from course participants for courses such as ‘Let’s Make India Trade’ (LMIT), ‘Master’s in Price Action Trading’ (MPAT), and ‘Options Multiplier’ (OM) offered by APGSTPL,” the order read.
Social Media Influence and Alleged Advisory Services by Asmita Patel
Patel, a well-known financial influencer, leveraged her social media presence to promote investment courses while allegedly offering unregistered investment advisory services. SEBI found that her company provided stock recommendations and investment strategies to clients without obtaining the necessary SEBI registration, violating the SEBI Act, 1992, and regulations governing investment advisers and research analysts.
During SEBI’s examination period, Patel operated nine stockbroker terminals as an authorized person of ABC Ltd. She maintains a strong digital presence, with over 526,000 YouTube subscribers, 290,000 Instagram followers, 73,000 Facebook followers, 1,900 LinkedIn followers, and 4,200 X (formerly Twitter) followers.
Investor Complaints and Alleged Misleading Claims Against Asmita Patel
SEBI’s action followed complaints from 42 individuals who alleged that Patel and her firm misled them with promises of financial freedom through her courses. Complainants claimed that Patel referred to herself as the “She-Wolf of the Stock Market” and the “Options Queen,” boasting that she had mentored over one lakh students, investors, and participants globally.
According to the complaints, Patel claimed to manage assets worth Rs 140 crore using her proprietary system. SEBI found that her team provided detailed stock recommendations—including buy and sell prices and stop-loss points—through emails and a dedicated Telegram group. Complainants alleged that Patel assured them they would become millionaires as soon as she received insider information, which she claimed was crucial for accessing the market.
“She used to say that by the end of the year, everyone would make a profit and that no one would suffer losses if they traded through her,” a complainant stated.
However, despite following the prescribed strategies, students and investors reportedly incurred substantial financial losses. They also claimed that Patel’s courses did not provide substantial trading skills, and the knowledge imparted was available for free on the internet.
Financial Channels and Regulatory Breaches
SEBI’s investigation uncovered a network of proprietary firms—King Traders, Gemini Enterprise, and United Enterprises—used to channel funds from course participants. Patel’s firm allegedly collected substantial fees for courses like MPAT and OM, which, according to SEBI, were merely a front to solicit investments and provide advisory services without regulatory approval.
In response to these findings, SEBI has directed Patel, her company, and associated entities to immediately cease all investment advisory and research analyst activities. Additionally, they have been barred from buying, selling, or dealing in securities until further notice. To prevent fund siphoning, SEBI has instructed banks and depositories to freeze all accounts linked to Patel and APGSTPL, ensuring the impounded funds remain within regulatory oversight.
While Patel has reportedly filed a settlement application with SEBI, the regulator clarified that such a filing does not prevent it from taking necessary measures to protect investors. Patel and her firm have also been instructed to provide a full inventory of their assets, including bank accounts, demat holdings, and properties.
Asmita Patel’s Public Image
On her website, Patel describes herself as “a woman on a mission to uplift the lives of people” by empowering them with financial knowledge. She claims to embody strong values and ethics as a teacher and has won numerous awards for her contributions. With 17 years of trading experience and over a decade of teaching, she presents herself as a thought leader and mentor in the stock market domain.
However, SEBI’s findings suggest a different narrative—one that calls into question the legitimacy of her financial education business and its compliance with regulatory requirements. The case underscores SEBI’s commitment to protecting investors from misleading financial advisory services and ensuring the integrity of India’s securities market.
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