SEBI Bans YouTuber Asmita Patel, Impounds ₹53 Crore for Running Unregistered Investment Advisory

The Securities and Exchange Board of India (SEBI) has barred YouTuber and financial influencer Asmita Patel, popularly known as the “She-Wolf of the Stock Market,” along with five other entities, from participating in the capital markets. The regulatory body has also impounded over ₹53 crore in illegal gains linked to an alleged unregistered investment advisory scheme.

SEBI’s Investigation and Findings

SEBI initiated a probe into Asmita Patel Global School of Trading Pvt Ltd (APGSOT) and its associated directors after receiving a complaint from a group of 42 investors. The complaint accused Patel of running unauthorized investment advisory activities and misleading individuals with exaggerated claims of profits.

Patel, who presents herself as the “Options Queen,” claimed to have mentored over one lakh students worldwide through her courses. However, SEBI found that participants were allegedly lured into making hefty payments for trading education that did not deliver promised results.

Allegations and Illegal Activities

According to SEBI, Asmita Patel and her associated entities used deceptive tactics to collect funds from investors. The investigation found that:

Patel and APGSOT allegedly provided buy/sell stock recommendations via private Telegram channels, Zoom meetings, and emails.
Students were encouraged to open trading accounts with a particular brokerage firm (ABC Ltd).
Investors were charged high fees under courses such as LMIT (Let’s Make India Trade), MPAT (Master’s in Price Action Trading), and Options Multiplier (OM).
Fees were collected through intermediary entities like King Traders, Gemini Enterprise, and United Enterprises.

₹53 Crore Gains Impounded

SEBI has directed Patel and her associates to return over ₹53.67 crore, collected as course fees from investors. The funds were allegedly funneled through multiple entities to avoid scrutiny. SEBI’s investigation covered transactions from August 2019 to October 2023 to establish whether the investment services were offered without required regulatory approval.

Regulatory Crackdown on Finfluencers

SEBI has been tightening its grip on unregistered financial influencers (finfluencers) who mislead investors. The action against Patel serves as a warning to others engaged in similar activities without proper authorization.

As SEBI continues its investigation, Patel and the other banned entities are expected to face further regulatory scrutiny and legal consequences.

Sources By Agencies