SEBI Cracks Down on ‘She Wolf’ Asmita Patel for Illegal Investment Advisory, Seizes ₹53.6 Crore
Asmita Jitesh Patel, a director of the well-known Asmita Patel Global School of Trading Pvt Ltd, built her reputation by making bold claims about financial success.
However, these promises often lacked substance and misled participants into believing in easy riches through stock trading.
One of the most concerning aspects of her courses was the advice given to participants, including suggestions to borrow capital for trading and even leave their jobs to trade full-time.
SEBI’s Findings and Actions
On February 6, the Securities and Exchange Board of India (SEBI) uncovered nearly Rs 54 crore in illegal gains and demanded that Patel’s trading school and other associated entities justify why the full fees collected—amounting to around Rs 104 crore—should not be seized.
Investigators found that Patel and her team showcased stories of professionals who reportedly left their jobs and achieved extraordinary financial success through her courses. These included claims about:
- A VP at a large company increasing their trading capital from Rs 30 lakh to Rs 3 crore.
- A chartered accountant growing their capital from Rs 30 lakh to Rs 12 crore.
- An engineer quitting their job to become a full-time trader, reaching Rs 80 lakh in trading capital.
SEBI’s order highlighted, “Students/investors/participants were encouraged to leave jobs and join MPAT (a course run by her institute) to make something big.”
Irresponsible Financial Advice
Participants were advised to sell mutual fund investments or use borrowed funds for trading. In one recorded conversation, Patel encouraged a student to take a loan for trading, specifying that the interest rate should not exceed 18%.
Stock trading was consistently portrayed as a business that could generate continuous profits, with participants being told to expect returns of 35-40%.
The risk-reward ratio was advertised as 1:3, making the proposition seem highly lucrative.
Minors and Stock Market Participation
Moneycontrol’s independent investigation also revealed instances where Patel’s trading school encouraged minors as young as 10 years old to engage in stock market activities.
However, SEBI regulations state that minors can hold a demat account and a trading account, but they cannot independently enter into a contract with a stockbroker.
SEBI’s guidelines clearly state: “A minor cannot enter into a contract with a stockbroker to purchase or sell any security.”
The ‘She Wolf’ and Her Fabrications
Asmita Patel often referred to herself as the “She Wolf of Stock Market” and the “Options Queen,” claiming that her strategies could yield returns of up to 300%.
However, SEBI’s investigation revealed a starkly different reality. Over four years (2019-2020 to January 2024), Patel and her school generated a mere Rs 12.28 lakh in trading profits.
Additionally, she asserted that she managed portfolios worth Rs 140 crore in proprietary accounts and handled funds worth Rs 283 crore.
SEBI’s investigation debunked these claims, showing that her actual trading turnover was only Rs 15.27 crore—about one-tenth of the stated figure.
SEBI stated in its order: “The claims made by Asmita Patel about managing a huge portfolio appear to be completely false and made with an intention to attract participants to various courses.”
SEBI’s Market Ban and Legal Actions
SEBI has banned six entities connected to Patel from participating in the securities market. These include:
- Asmita Jitesh Patel
- Asmita Patel Global School of Trading Pvt Ltd (APGSOT)
- Jitesh Jethalal Patel
- King Traders
- Gemini Enterprise
- United Enterprises
SEBI launched its probe after receiving complaints from 42 investors about unauthorized investment advisory activities. The findings revealed that Patel misled participants by exaggerating potential profits and charging high fees for courses with minimal educational value.
Illegal Fee Collection and Investment Manipulation
APGSOT allegedly directed students to specific stocks through private Telegram channels, Zoom meetings, and emails. Participants were required to open trading accounts with ABC Ltd., creating a conflict of interest.
SEBI’s investigation, spanning from August 2019 to October 2023, found that APGSOT collected course fees through multiple firms, including King Traders, Gemini Enterprise, and United Enterprises. These entities collectively amassed Rs 53.67 crore from students enrolled in courses such as:
- LMIT (Let’s Make India Trade)
- MPAT (Master’s in Price Action Trading)
- Options Multiplier (OM)
SEBI has now directed Patel and her associates to return the illegally obtained Rs 54 crore, with a potential increase to Rs 105 crore, inclusive of interest.
Misleading Online Presence and Further Allegations
Patel had a strong online presence, boasting over 526,000 subscribers on YouTube and 290,000 followers on Instagram. She frequently provided trading recommendations through Telegram channels subscribed to by her students.
Apart from misleading claims, SEBI accused Patel of actively pushing participants to prioritize trading over stable jobs, exit mutual fund investments, or take loans to enroll in her courses.
These actions, SEBI stated, go beyond educational services and fall under investment advisory activities.
Regulatory Standpoint and Investor Protection
SEBI emphasized that providing stock-specific advice does not qualify as an educational service but rather as investment advisory and research analyst activity.
Kamlesh Varshney, SEBI’s Whole-Time Member, stated: “Confidence in the capital market can be sustained largely by ensuring investor protection and enhancing investor trust. However, the facts of this case glaringly reveal how investor trust has been compromised and how the system has been abused for personal gains by devising ways to circumvent legal provisions.”
Though Patel’s trading school has filed for a settlement, SEBI clarified that this does not halt the proceedings or prevent further legal action.
