NEW DELHI: Asmita Patel, a prominent YouTuber with over 500,000 followers, has come under the scanner of the Securities and Exchange Board of India (SEBI). The regulator has seized Rs 53.67 crore from Patel and five other related entities for allegedly earning illegal profits through unregistered investment advisory and research analyst services. Patel, who is often referred to as the โOptions Queenโ and โShe Wolf of Stock Market,โ along with her associates, is also at risk of losing an additional Rs 104.6 crore collected as course fees, which SEBI believes were part of unregistered advisory services.
The investigation was initiated by SEBI after receiving complaints from 42 participants of Patelโs stock market training programs. The courses offered by Asmita Patel Global School of Trading Pvt Ltd, such as โLetโs Make India Tradeโ (LMIT), โMasterโs in Price Action Tradingโ (MPAT), and โOptions Multiplierโ (OM), were marketed as educational programs but allegedly functioned as unregistered advisory services. SEBIโs interim order has directed Patel, her company, and related entities to cease offering these services immediately.
SEBIโs investigation revealed that the fees collected from participants were routed through entities like King Traders, Gemini Enterprise, and United Enterprises. The regulator noted that this was a regular practice, making all six entities jointly and severally liable for the Rs 53.67 crore earned from course fees. SEBI has also issued a show-cause notice, questioning why the Rs 104.6 crore collected as fees should not be disgorged along with interest.
Kamlesh Varshney, SEBIโs Whole-Time Member, highlighted in the order that Patel and her associates devised a scheme to lure students and investors into trading specific stocks. Participants were advised to open trading accounts with ABC Ltd and were provided buy/sell recommendations through Telegram channels owned by Patel. SEBI stated that these actions indicate the provision of investment advice and research analyst services under the guise of education.
The order further emphasized that the fees collected for LMIT, MPAT, OM, and other courses were earned through unregistered advisory services, making the entire amount subject to disgorgement. SEBI has barred Patel and the related entities from accessing the securities market until further notice.
This case marks the second major crackdown by SEBI on unregistered advisory services in recent times, underscoring the regulatorโs commitment to protecting investors from fraudulent practices in the stock market. Asmita Patel, who built a massive following on YouTube by offering stock market insights, now faces significant legal and financial repercussions as SEBI continues its investigation.
