The Securities and Exchange Board of India (SEBI) has taken decisive action against Asmita Patel, popularly known as the “Options Queen” and “She-Wolf of the Stock Market,” for allegedly providing unregistered investment advisory services. In a detailed interim order, SEBI has barred Patel and her entities from the securities market and ordered the return of over ₹53.67 crore collected from unsuspecting investors.
This crackdown is part of SEBI’s broader initiative to curb unauthorized financial advisory services, especially from social media influencers who have gained significant followings by offering “expert tips” on trading and investing. Patel’s activities came under scrutiny when multiple complaints were lodged about her services, which promised high returns under the guise of education but allegedly crossed the line into providing direct investment advice.
Who Is Asmita Patel?
Asmita Patel rose to fame through her social media presence, where she styled herself as a financial coach and options trading expert. She built a loyal following on platforms like Instagram, YouTube, and Telegram, where she regularly shared trading strategies and motivational content aimed at retail investors.
Her firm, Asmita Patel Global School of Trading LLP (APGST), positioned itself as a premier destination for learning advanced trading techniques. Through high-energy seminars and online workshops, Patel cultivated a vibrant community of followers eager to learn the secrets of her “no-fail” trading strategies.
However, Patel’s claims of consistent success in the highly volatile world of options trading raised eyebrows among industry veterans. Despite portraying herself as an educator, SEBI alleges that her activities constituted direct investment advice, which requires proper registration under the SEBI Investment Advisers Regulations.
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What SEBI Found
According to SEBI’s investigation, Patel and her firm collected large sums from clients in exchange for personalized trading advice. While these services were marketed as educational programs, the regulator discovered that they included specific stock recommendations and trading strategies tailored for individual clients — a clear violation of SEBI regulations.
The interim order revealed that Patel and her entities had amassed approximately ₹104 crore through their various activities, out of which SEBI has frozen assets worth ₹53.67 crore. The order also prohibits her from promoting any financial services or investment advice on social media or any other public platform.
SEBI’s findings highlight several key violations:
- Unregistered Advisory Services: Patel was found to be offering investment advice without registering as an investment adviser, which is mandatory under Indian securities law.
- Misleading Promotions: Her social media content often made exaggerated claims about returns, encouraging retail investors to believe they could achieve similar success by following her strategies.
- Misuse of Collected Funds: SEBI has ordered a detailed investigation into how the funds collected from clients were utilized.
Immediate Impact and SEBI’s Directive
SEBI’s directive has sent shockwaves across the financial influencer community. Patel and her associated entities have been instructed to:
- Immediately cease all advisory services.
- Refund all fees collected from clients.
- Refrain from promoting or advertising any financial services on social media.
SEBI’s order reflects its increasing concern about the growing influence of social media-based financial advisors who often operate in a regulatory gray area. In the case of Patel, the scale of her operations and the amount of money involved made her a prime target for regulatory intervention.
The Rise of Financial Influencers and SEBI’s Crackdown
In recent years, financial influencers, or “finfluencers,” have gained popularity by offering simplified investment advice to retail investors. While many of them aim to educate and empower first-time investors, the lack of regulatory oversight has also allowed some to exploit their followers for financial gain. SEBI’s crackdown on Asmita Patel serves as a warning to others in the industry that unregistered advisory services will not be tolerated.
According to legal experts, this case may be a turning point in how SEBI handles finfluencers moving forward. The regulator is expected to introduce stricter guidelines to ensure that only qualified professionals with the necessary certifications and licenses are allowed to offer investment advice.
What’s Next for the Option Queen?
For Patel, the future remains uncertain. Legal experts predict a long and complex refund process as hundreds of investors are likely to come forward seeking compensation. Additionally, SEBI’s interim order leaves open the possibility of further penalties after a detailed investigation.
Patel has yet to respond publicly to the allegations. While her social media accounts remain active, her usual promotional content has been noticeably absent since the interim order was issued.
For now, the “Options Queen” finds herself at the center of a regulatory storm. SEBI’s swift and decisive action is a clear reminder that even the most popular figures in the financial world are not above the law.
