The Securities and Exchange Board of India (SEBI) has finfluencer Asmita Patel, the self-proclaimed “she-wolf of the stock market”, and several associates, impounding INR53.6 million (USD616,364). The regulator found Patel and her company, Asmita Patel Global School of Trading (AGSTPL), to be allegedly providing unregistered investment advisory and research analyst services.
The SEBI cracked down on Patel, her husband, Jitesh Patel, and AGSTPL as they allegedly lured investors through social media and educational courses, instructing them to open accounts with a specific brokerage and obscuring fees through third-party transactions.
The SEBI investigation was prompted by 42 complaints against the Patels, AGSTPL and three other entities. It revealed a scheme where Patel allegedly presented herself as an “options queen”, promising financial freedom and insider information. Complainants reported significant financial losses and a lack of genuine trading education, despite Patel’s claims of providing profitable strategies. The SEBI alleged that the Patels were using educational courses as a front to solicit investments, effectively providing investment advice without the required registration.
The regulator has ordered the Patels to cease all advisory activities, frozen their linked bank accounts, and demanded a comprehensive inventory of their assets. It appears that the Patels allegedly devised a scheme to entice investors to trade specific stocks and open accounts with a designated brokerage, providing buy and sell recommendations through social media.
Despite Patel’s attempt to settle, the SEBI is determined to protect investors and maintain market integrity. The regulator’s action underscores its commitment to curbing the activities of unregistered financial influencers who mislead investors for personal gain.
