The Securities and Exchange Board of India (SEBI) has taken decisive action against renowned stock market influencer, Asmita Patel, known as the "Queen of Options Trading" and the "She Wolf of the Stock Market," amid rising concerns of unregulated investment advisories disguising themselves as educational platforms. The regulator has impounded Rs 53.67 crore earned by Patel's organization, Asmita Patel Global School of Trading Pvt Ltd, and has barred her and associated entities from accessing the securities market, following complaints from 42 participants of her courses.
Sebi's interim order, issued on February 6, signals the regulatory body's strict stance on individuals who mislead retail investors under the premise of providing educational content. The investigation revealed significant irregularities within Patel's training programs, which encompassed various paid courses such as the popular "Let's Make India Trade" and "Master's in Price Action Trading." The educational content, once seen as harmless, has turned out to be the smoke screen for providing actual investment advice, which necessitates official registration.
According to SEBI, the action against Patel is part of an overarching crackdown on unregistered financial influencers—commonly referred to as finfluencers—who leverage social media platforms to promote unregulated trading advice. Patel's digital presence is considerable; she has amassed over 526,000 subscribers on YouTube, with additional followings on Instagram, Facebook, LinkedIn, and X (formerly Twitter).
SEBI has pointed out the school was not merely offering education but was actively instructing students on trading specific stocks and even encouraging them to open accounts with certain brokerage firms. Its operations included sharing stock recommendations and tips via Telegram channels, and offering detailed course structures for hefty fees.
The regulator's investigation disclosed the collection of fees was at odds with the claims made about the nature of the services provided. The entire amount earned through these services is under scrutiny, with SEBI demanding explanations as to why they should not seize the total Rs 104.6 crore garnered from students over several years.
“The recommendations for buy and sell of specific securities were not just couched as educational advice; it was investment advice for which the necessary regulatory framework was not adhered to,” said Kamlesh Varshney, SEBI’s Whole-Time Member. This illegal structure apparently included the routing of fees through firms connected to Patel, finding violations of the Regulatory Investment Advisor (RIA) and Research Analyst (RA) regulations.
Patel's legal troubles come as the Indian regulator strengthens its controls over finfluencers. Recent amendments prohibit these influencers from making performance claims or using real-time stock data under the guise of providing educational advice. Violations of this code could lead to severe penalties, including suspension and debarment from financial markets.
This isn’t the first such case involving finfluencers; SEBI recently targeted other influencers, highlighting the regulator’s firm resolve to maintain integrity within the trading environment. Back in December 2024, the regulator enforced action against another finfluencer, Nasiruddin Ansari, popularly called the "Baap of Chart," underscoring its zero-tolerance policy toward violations.
Despite Patel's accolades, including being recognized as “Times Leading Icon 2021” for excellence in financial education, these accolades have not exempted her from scrutiny. She claims to have only provided educational courses, yet investigations reveal exaggerated testimonials and promises of guaranteed returns, which misled her clients significantly.
SEBI's continued vigilance aims to safeguard the interests of retail investors who are often lured by the appeal of high returns through casual interactions with self-styled trading gurus. “If there are three or four people giving us very objective, good advice, there are seven others out of 10 who are probably driven by some other consideration,” Finance Minister Nirmala Sitharaman indicated during discussions about the growing influence of unregistered advisors.
With this latest action, SEBI reinforces its commitment to enforce integrity and transparency across the investment advice domain and send a clear message to those who might wish to operate outside the regulatory framework.