Stock market trading scam on social media; Why Sebi bans Asmita Patel from markets?

Social media is flooded with stock market tips, promising quick profits and “can’t-miss” opportunities. But before you act on that viral trading advice, consider the risks.

Many self-proclaimed “experts” online lack real financial credentials. Some push stocks they already own to drive up prices—a tactic known as pump and dump. Others may have hidden affiliations with companies they promote.

Misinformation spreads fast, and hype-driven trades often lead to losses. Unlike professional analysts, social media influencers aren’t accountable for their recommendations.

Before making any investment decisions, verify sources, cross-check facts, and consult a licensed financial advisor. In the world of stock trading, skepticism can save your portfolio.

The Securities and Exchange Board of India (SEBI) has barred financial influencer Asmita Patel, known as the ‘She Wolf of the Stock Market,’ along with her husband Jitesh Patel and their company, Asmita Patel Global School of Trading Pvt Ltd (AGSTPL), from participating in the securities market. SEBI has also taken action against three other entities—Sagar Dhanjibhai (King Traders), Suresh Parmashivam (Gemini Enterprise), and Jigar Rameshbhai Dawada (United Enterprises). The regulator has impounded a total of Rs 53.67 crore from these entities for allegedly providing unregistered investment advisory services and research analyst activities.

Who is Asmita Patel?

Asmita Jitesh Patel is the director of AGSTPL, a Navi Mumbai-based company offering services in securities trading, mutual funds, and commodities trading, as well as training programs for wealth management. Through her online presence and various social media platforms, she gained popularity, amassing a significant following—over 5.26 lakh subscribers on YouTube, 2.9 lakh followers on Instagram, and thousands more across LinkedIn, Facebook, and Twitter. Patel marketed herself as the ‘Options Queen’ and claimed to have mentored over one lakh investors globally while managing assets worth Rs 140 crore using her proprietary system.

SEBI’s Interim Order and Restrictions

SEBI’s whole-time member Kamlesh Varshney issued an interim order prohibiting Asmita, Jitesh, AGSTPL, and the other three entities from buying, selling, or dealing in securities until further notice. The order also mandates them to cease unregistered investment advisory and research analyst services. Banks have been directed to freeze withdrawals from the accused parties' accounts unless balances exceed the impounded Rs 53.67 crore.

The crackdown followed complaints from 42 individuals who had enrolled in AGSTPL’s training programs and alleged they were misled into making risky investments.

Modus Operandi: How Investors Were Misled

AGSTPL offered multiple trading courses, including ‘Master’s in Price Action Trading’ (MPAT), ‘Let’s Make India Trade’ (LMIT), and ‘Options Multiplier’ (OM). Students who enrolled in these courses were added to exclusive Telegram groups where Patel allegedly shared trade details, including entry and exit prices. She reportedly urged participants to liquidate existing investments in mutual funds and gold or take loans to increase their trading capital.

During the LMIT event, Patel promised financial success, assuring students that her strategies would guarantee over 40% annual returns. Some investors were instructed to transfer their trading accounts under her branch, reinforcing her influence over their trades. Patel further claimed she had insider information, promising that her followers would become millionaires by investing in specific stocks. However, despite following her strategies, many students reported massive losses ranging from Rs 20,000 to Rs 35 lakh.

Allegations and Legal Consequences

According to SEBI’s order, Patel leveraged platforms such as LinkedIn, YouTube, Facebook, Telegram, Instagram, and WhatsApp to illegally promote and sell stock trading tips, leading to financial distress among her students. Many felt deceived and sent legal notices to AGSTPL, only to receive a response distancing the company from actual trading, claiming it only provided ‘educational advice.’

SEBI’s findings concluded that Patel misrepresented her trading success, falsely claiming to manage portfolios worth Rs 140-283 crore. The investigation remains ongoing, and SEBI’s actions mark a strong stance against unregistered investment advisory services that exploit unsuspecting investors.