Mumbai: In a major crackdown on financial irregularities, the Securities and Exchange Board of India, SEBI bans Asmita Patel and five others from participating in the securities market. The market regulator has also impounded illegal gains worth more than ₹53 crore, citing violations of securities laws and fraudulent activities. The action marks one of SEBI’s most significant moves against unregulated financial influencers who promote stock trading strategies without necessary compliance.
SEBI’s investigation revealed that Asmita Patel and her associates engaged in misleading practices, inducing investors to pay for unauthorized stock market courses and trading recommendations. According to the regulator, these activities were in violation of securities laws, as Patel was providing investment advice without the required SEBI registration. As a result, SEBI banned Asmita Patel from engaging in any securities-related activities, sending a strong warning to others operating in the financial influencer space.
The investigation further highlighted how Patel and her associates leveraged social media platforms to attract retail investors. Promising high returns through “guaranteed” stock market strategies, they allegedly misled investors while generating significant profits through subscription fees and advisory services. SEBI found that the total unlawful gains amassed exceeded ₹53 crore, leading to the immediate freezing of these funds.
Financial market experts believe SEBI’s stringent action against Asmita Patel is part of a broader effort to curb misleading financial advice circulating on digital platforms. In recent years, SEBI has been tightening regulations around unregistered financial influencers, who often promote high-risk trading strategies without proper risk disclosures. By banning Asmita Patel, SEBI has reinforced its stance on protecting retail investors from fraudulent schemes.
Asmita Patel is among several financial influencers who have come under SEBI’s scrutiny for allegedly violating investment advisory regulations. This latest action indicates that the regulator is increasing oversight in response to the rising influence of social media-driven financial advice. SEBI’s ban on Asmita Patel may also set a precedent for stricter enforcement against similar entities operating without regulatory approval.
While Patel and her associates have yet to respond to SEBI’s findings, legal experts suggest that the case could lead to further regulatory actions, including potential penalties or criminal proceedings. With over ₹53 crore impounded, SEBI aims to prevent further investor losses and ensure stricter compliance with market regulations.
As SEBI bans Asmita Patel and intensifies its crackdown on unregulated financial advisors, market participants are urged to be cautious while following online trading advice. The regulator continues to remind investors to verify the credentials of financial advisors before making investment decisions. This case underscores the growing need for stronger safeguards against misleading financial promotions in the digital age.
