Dubbed as “she-wolf of the stock market” or “options queen”, mega popular YouTube finfluencer Asmita Jitesh Patel is facing action from the capital markets regulator, Securities and Exchange Board of India (SEBI) for alleged “ill gains”.
What is the SEBI Action?
SEBI has banned six entities, including Asmita Patel Global School and Patel, from the capital markets for alleged unregistered investment advisory services. The watchdog has impounded more than ₹53 crore from the parties, which were collected by them as fees course participants for various courses, as per a PTI report.
In an interim order-cum-show cause notice, SEBI on Ferbuary 6 has banned Asmita Patel Global School of Trading (APGSOT), Asmita Patel, Jitesh Jethalal Patel, King Traders, Gemini Enterprise and United Enterprises, from the capital markets, the report added.
Further, SEBI has also asked why the six named entities to explain why another ₹104.63 crore should not be collected as fees for various programmes and should not be seized as well.
Who is Asmita Patel?
Dubbed as the “She-wolf of the Stock Market” or “Options Queen”, Asmita Patel is a finfluencer with close to 5.3 lakh followers on YouTube.
She has amassed the following by sharing stock tips on various social media platforms. According to a report by the Hindu Business Line, she also has 73,000 followers on Facebook, and 90,000 Instagram followers.
Further, on her website, Patel offers “educational courses” on Options Multiplier (OM), Master’s in Price Action Trading (MPAT), and Let’s Make India Trade (LMIT). The website also describes Patel as “A woman who is on a mission to uplift the lives of people”, adding that she “seeks to empower people with the right knowledge when it comes to finance, stock market and investing one’s wealth in a responsible and mindful manner”.
As per the website, Patel has 17 years of trading experience, and more than 10 years of teaching experience, calling her a “thought leader” and “admired mentor”.
Why The SEBI Action Against Asmita Patel?
The order, issued by SEBI’s full-time member, Kamlesh Varshney, came after 42 of Asmita Patel’s clients filed complaints against her.
The order mentioned that Patel provided stock recommendations to investors through private telegram channels, zoom meets, and educational courses. According to SEBI, Patel provided such tips and courses without mandatory registration from the SEBI, hence violating norms.
Additionally, the order stated, “Students/investors/participants were encouraged to leave the job and join MPAT (a course run by her institute) to make something big.”
The market regulator found that the accused violated RIA/RA rules claiming false assurances of returns, along with misleading customer reviews.
