The Securities and Exchange Board of India (SEBI) has taken regulatory action against Asmita Patel, a stock market trader and educator, over allegations of unregistered investment advisory services, misleading claims, and regulatory violations. Patel, often referred to as the “She-Wolf” of the stock market, is under investigation for her trading practices and the financial gains made through her stock market courses, said a report by Economic Times.

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SEBI’s Investigation and Findings

SEBI’s inquiry into Patel’s activities focuses on claims that she provided investment advice without the necessary regulatory approvals. Her stock market training programs, including courses such as LMIT and MPAT, reportedly promised high returns, with some claims suggesting returns of up to 300 per cent. However, SEBI’s findings indicate discrepancies between these claims and her actual trading performance.

According to SEBI, Patel and her company, Asmita Patel Global School of Trading Pvt Ltd, made a net profit of Rs 12,28,365 from trading between 2019-20 and January 2024, said a report by Moneycontrol. This figure contrasts with her assertions of managing a Rs 140 crore portfolio through a proprietary trading system.

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The investigation further revealed that the total trading volume generated by accounts held by Patel and her company during the period from August 26, 2019, to January 31, 2024, amounted to Rs 152.79 crore. SEBI’s findings also noted claims made during her courses that she was managing Rs 283 crore in funds, which the regulator deemed baseless.

Financial Impact and Regulatory Action

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As part of its interim order issued on February 6, SEBI has impounded approximately Rs 54 crore in alleged illegal gains linked to Patel, her company, and three other entities. Additionally, all six entities involved have been asked to justify why the regulator should not seize the Rs 104.6 crore collected as course fees.

SEBI’s action against Patel is part of a broader effort to regulate unregistered financial advisors and protect retail investors from misleading investment guidance.

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Investor Reactions and SEBI’s Warning

Patel has built a significant following on social media, where many retail investors relied on her insights. SEBI’s probe has led to uncertainty among her followers, with some expressing concerns over investments made based on her recommendations. Financial experts continue to advise caution, urging investors to seek guidance from SEBI-registered advisors and verify claims before making investment decisions.

Asmita Patel has not yet issued an official statement in response to SEBI’s findings. Legal experts suggest she may challenge the regulatory action, potentially leading to a prolonged legal process. Meanwhile, SEBI maintains its focus on strengthening oversight and enforcement to ensure compliance within India’s financial markets.