Economic Fraud
SEBI Bans Financial YouTubers for Unregistered Investment Advisory Services
The Securities and Exchange Board of India (SEBI) has barred Asmita Patel Global School of Trading (APGSOT) and its founder, Asmita Patel, along with five other entities, from participating in the capital markets. The ban follows allegations of unregistered investment advisory services, misleading investors, and collecting over Rs 53.67 crore in fees from participants under the pretext of trading education.
Entities Banned by SEBI
The six entities facing action include:
- Asmita Patel Global School of Trading Private Limited (APGSOT)
- Asmita Jitesh Patel
- Jitesh Jethalal Patel
- King Traders
- Gemini Enterprise
- United Enterprises
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Misleading Investment Scheme
SEBI’s investigation revealed that APGSOT operated under the guise of providing trading education but actually functioned as an unregistered investment advisory. Participants were lured into buying costly courses with exaggerated profit promises, while the school directed them to open trading accounts with a specific brokerage (ABC Limited).
Additionally, buy/sell recommendations for stocks were issued through private Telegram channels, Zoom meetings, and emails, further violating SEBI’s regulations. Fees from course participants were routed through multiple proprietary firms, making the operation appear legitimate.
Financial Discrepancies and Legal Action
SEBI found that another Rs 104.63 crore had been collected from investors through similar courses and has asked the accused to explain why this amount should not be seized as well. The funds were allegedly funneled through King Traders, Gemini Enterprise, and United Enterprises to obscure transactions.
As a result, SEBI has ordered all accused parties to immediately stop offering investment advisory services or misrepresenting themselves as financial advisors. They are also prohibited from engaging in any securities market-related activities, directly or indirectly.
Ongoing Investigation
This action follows complaints from 42 investors, prompting an investigation covering activities between August 2019 and October 2023. The findings remain preliminary, and the accused have been given an opportunity to present their defense. However, SEBI maintains that the entities violated investment advisory rules and misled the public under the pretense of trading education.
The case highlights SEBI’s continued efforts to crack down on financial influencers and unregistered investment schemes that exploit unsuspecting investors.