The Securities and Exchange Board of India (SEBI) has placed a ban on six entities from the capital markets including finfluencer Asmita Patel for allegations regarding unregistered investment advisory services.
The capital markets regulator directed the entities to surrender over Rs 53 crore collected as fees course from participants for several courses, reported PTI. SEBI issued an interim order and show cause notice on Thursday prohibiting six entities, namely Asmita Patel Global School of Trading Pvt Ltd (APGSOT), Jitesh Jethalal Patel, Asmita Jitesh Patel, King Traders, United Enterprises, and Gemini Enterprises, from the capital market.
Further, the regulator asked the entities to explain why an additional Rs 104.63 crore should not be collected as fees for various programmes and should not be seized as well. The case is related to individuals enrolled in trading courses provided by the Asmita Patel Global School of Trading.
The order stated that those enrolled in the courses were misled by exaggerated promises of profits and forced into paying high fees for ineffective trading education. Notably, Asmita Patel, a financial influencer and YouTuber, portrays herself as the ‘She Wolf of the stock market’ and claims to have mentored more than one lakh investors/students worldwide.
According to the complainants, the regulator said that Asmita Patel owned assets worth Rs 140 crore using her proprietary system. SEBI also found that each entity played certain roles at various stages, which have prima facie found to be in violation of the norms of the regulator.
The regulator alleged that APGSOT along with Asmita and Jitesh made a scheme wherein they lured investors/participants to trade in specific stocks and were instructed to open a trading account with ABC Ltd. The trading school shared stock recommendations on their telegram channels.
Further, APGSOT collected fees from course participants and directed them to deposit the funds in the bank accounts operated by King Traders, United Enterprises, and Gemini Enterprise. This was a regular practice followed by the entity.
However, the regulator clarified that the findings in the order are prima facie and the entities have the opportunity to prove their innocence. The body said that it is not issuing a final verdict in the matter.
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