Sebi bans 'she wolf' of stock market YouTuber in finfluencer crackdown
New Delhi, Feb 7, 2025
The market regulator has seized Rs 54 crore in ill-gotten gains from Asmita Patel
The Securities and Exchange Board of India (Sebi) has continued on in its crackdown against 'finfluencers' by banning Asmita Jitesh Patel, popularly known as the "she wolf" of the stock market and the "options queen," from accessing the securities market. The regulator has impounded Rs 53.67 crore of the Rs 104 crore earned through alleged illegal investment advisory services, the market regulator said in an order issued on February 6.
The order extends to Asmita Patel Global School of Trading Pvt Ltd and five other entities, including her spouse Jitesh Jethalal Patel.
Sebi found that the school, under the pretense of offering stock market training courses, was actually providing buy and sell recommendations on stocks and options, activities that require regulatory registration.
Sebi has directed Asmita Patel, her school, and other involved entities to cease offering investment advisory and research analyst services.
The regulator is also considering seizing the entire Rs 104.6 crore collected from investors and students as course fees.
All six entities have been barred from participating in the securities market.
How Asmita Patel's trading school operated
To run her trading school, Asmita Patel leveraged her social media presence, which boasts of 526,000 subscribers on YouTube, 290,000 followers on Instagram, 73,000 followers on Facebook, 1,900 LinkedIn connections, and 4,200 followers on X.
Through her website, asmitapatel.com, she offered a variety of paid courses, including "Let's Make India Trade" (LMIT), "Master’s in Price Action Trading" (MPAT), and "Options Multiplier" (OM), providing aspiring traders with expert guidance and strategies.
Triggered by 42 participant complaints, Sebi's investigation found that the school was advising students to trade in specific stocks and open trading accounts with a particular firm. Additionally, stock tips were shared through Telegram groups.
The course fees were routed through third-party entities:
King Traders (Sagar Dhanjibhai)
Gemini Enterprise (Suresh Parmashivam)
United Enterprises (Jigar Rameshbhai Dawada)
All three entities are among the six parties banned by Sebi.
Sebi's crackdown on finfluencers
Sebi's actions follow its proposal for tighter restrictions on financial influencers introduced last month. The proposal included a ban on the use of real stock price data in educational content, direct or indirect stock recommendations by unregistered individuals, and unverified claims of trading success.
Sebi cracks down on 'finfluencers' with new rules on stock education
Violators of these new rules could face penalties, suspension, or even debarment from financial markets. Sebi's firm stance highlights a broader effort to regulate financial influencers (finfluencers) who mislead retail investors under the guise of providing educational content.
Before Patel, Nasiruddin Ansari, better known as "Baap of Chart," also faced Sebi scrutiny for similar violations.
[The Business Standard]
