Asmita Patel, who calls herself the “She-Wolf of the Stock Market” and “Options Queen” and what not!

Her kingdom seems to have foundation of illegal SEBI activities.

SEBI has penalized ₹53.67 Crore in an interim order against Asmita Patel, for now.

Offering courses like Let’s Make India Trade (LMIT), Master’s in Price Action Trading (MPAT), and Options Multiplier (OM), she claimed to mentor over 1 lakh students globally and manage a ₹140 crore portfolio using her “proprietary system”.

How did this case comes into the picture?

However, on February 7, 2025, SEBI exposed her fraudulent operations, impounding ₹53.67 crore and issuing a show-cause notice for an additional ₹104.6 crore in alleged illegal earnings.

SEBI found her guilty of masquerading unregistered investment advisory services as “educational courses,” exploiting thousands of investors seeking financial freedom.

How Was She Caught?

SEBI’s probe began after 42 participants filed complaints, alleging they were misled into paying exorbitant fees (up to ₹8.26 lakh per course) for promises of guaranteed profits.

Key findings from the 128-page order reveal:
Telegram Channels & Stock Tips: Patel’s team operated private Telegram groups (e.g., M16/M17) where they shared specific buy/sell recommendations, entry-exit prices, and stop-loss levels.

These tips violated SEBI’s rules against unregistered advisory services.

Zoom Meetings & Pressure Tactics: Participants were instructed in Zoom calls to liquidate mutual funds, gold, and even borrow money to fund trades recommended by Patel.

One complainant stated they were told, “You’ll become a millionaire once I share insider information” 38.Fake Testimonials & Misrepresentation: Patel falsely claimed her students achieved astronomical returns, such as a chartered accountant growing ₹30 lakh to ₹12 crore.

SEBI verified these claims as fabricated, noting her own trading profits were only ₹12.28 lakh over five years—far below her marketed success.

Complainants’ Stories: Broken Promises & Financial RuinThe 42 complainants painted a grim picture of Patel’s operations:False Guarantees: Participants were assured “no losses” and “exceptional profits” if they followed Patel’s strategies.

Instead, most incurred heavy losses, with one stating, “I lost my life savings trusting her”. No Real Education: Courses offered basic knowledge freely available online.

A complainant noted, “We were never taught to trade independently—just to blindly follow her tips” Pressure to Invest More: Patel’s team allegedly pushed participants to open trading accounts with ABC Ltd (where she was an authorized broker) and pour in more capital, even if it meant taking loans 

Violations Uncovered:

SEBI’s order highlighted multiple regulatory breaches:
Unregistered Advisory Services: Asmita Patel provided stock recommendations without SEBI registration as an Investment Advisor (IA) or Research Analyst (RA), violating Sections of the SEBI Act, 1992, and PFUTP Regulations.

Misleading Claims: Exaggerated testimonials, false trading profits, and claims of managing ₹140 crore portfolios misled investors.

Tax Evasion & Money Laundering: Routing fees through shell entities to avoid GST and siphon funds.

Exploiting SEBI’s Educational Guidelines: Despite a October 2024 circular banning live market data in courses, Patel continued using real-time tips to lure participants.

SEBI’s investigation leveraged: Telegram Chat Logs: Detailed stock recommendations with timestamps proved Patel’s team crossed into illegal advisory territory.

Zoom Recordings: Evidence of pressuring participants to liquidate assets and invest aggressively.

Bank Statements: Traced ₹104.6 crore in fees to shell entities, exposing money laundering .

Brokerage Data: Patel’s trading accounts showed minimal profits (₹12.28 lakh), contradicting her “expert trader” image.

Penalties & Show-Cause Notice: SEBI’s Stern MessageImmediate Actions:₹53.67 crore impounded from Patel and associates. All entities barred from securities markets and ordered to cease advisory activities.

Bank accounts and demat holdings frozen to prevent fund diversion.

Show-Cause Notice:
SEBI demands justification for why ₹104.6 crore (total course fees + interest) should not be disgorged 45.Patel faces potential criminal charges for GST evasion and fraud.

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Complete SEBI order on Asmita Patel - www.sebi.gov.in/sebi_data/attachdocs/feb-2025/Asmi…

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