300% returns’ promise vs ₹12 lakh reality: The curious case of 'options queen' Asmita Patel

Asmita Patel, the self-proclaimed "She Wolf of the stock market" and "options queen," saw her empire crumble under the scrutiny of the Securities and Exchange Board of India (SEBI). The regulator’s probe revealed that Patel’s trading claims and the promises made through her Asmita Patel Global School of Trading Pvt Ltd were grossly exaggerated.

On February 6, SEBI issued an interim cum show cause notice, impounding nearly ₹54 crore in illegal gains from the school and its directors. The notice also demanded an explanation for the ₹104 crore collected as course fees for programs like LMIT and MPAT, which promised returns of up to 300%.

While Patel marketed her school as a gateway to extraordinary wealth, SEBI’s findings paint a starkly different picture. Between 2019 and January 2024, Patel and her school reportedly made just ₹12.28 lakh in trading profits. Claims of managing portfolios worth ₹140 crore and funds of ₹283 crore were also debunked, with SEBI determining the total turnover to be merely ₹15.27 crore.

The investigation also exposed the school’s reckless advice to participants, urging them to quit jobs, borrow capital to trade. Patel reportedly encouraged borrowing at interest rates under 18% and projecting trading as a high-return, low-risk venture.

SEBI highlighted examples of claims used to lure participants, such as a VP turning ₹30 lakh into ₹3 crore and a chartered accountant supposedly growing their capital from ₹30 lakh to ₹12 crore. According to the order, such assertions were fabricated to attract students.

Adding to the controversy, the school reportedly targeted minors, with a Moneycontrol report claiming children as young as 10 years old were encouraged to actively participate in stock trading. SEBI emphasized that minors cannot legally engage in stock market transactions.

SEBI's preliminary order has not only impounded the gains but also demanded accountability for the inflated promises and misrepresentation. The fallout marks a significant step in cracking down on predatory trading schemes and safeguarding investor interests.

SEBI has introduced strict regulations to curb misleading financial advice from unregistered "finfluencers" on social media. These measures aim to protect investors from deceptive practices while ensuring that only qualified professionals provide investment guidance. 

Among the key restrictions, finfluencers are prohibited from using live stock prices or data from the past three months in their educational content, requiring a three-month delay to prevent disguised trading advice. Additionally, only SEBI-registered professionals can offer stock recommendations or claims about returns, and unregistered individuals face penalties for direct or indirect investment tips. Misleading claims, such as promises of guaranteed returns or testimonials implying success, are explicitly banned.

Violators of these rules face significant consequences, including fines, suspension, or cancellation of SEBI registration. Even entities associating with unregistered influencers are held accountable. SEBI has already taken action against prominent figures like Ravindra Balu Bharti and Nasiruddin Ansari ("Baap of Chart"), banning them for spreading false tips. 

In 2024 alone, over 8,890 misleading posts were flagged for legal action. These regulations have also impacted brand partnerships for finfluencers, leading to a 40–60% decline in deals due to heightened compliance requirements. SEBI-registered entities, such as brokers and mutual funds, are now prohibited from collaborating with unregistered influencers and must ensure their advertisements do not appear alongside unregulated content.