Market regulator SEBI has ordered to return illegal earnings of about Rs 54 crore to Asmita Patel Global School of Trading and five others. The step has been taken after the allegations that these units were running the investment advisor and research analyst business without registration.
According to the showing cause notice cum interim order, after the completion of the case, this amount including interest can increase to Rs 105 crore. This includes the amount recovered from the firm for various trading courses.
Asmita Patel, who describes herself as an options queen, has a lot of presence in online and has around 5.26 lakh subscribers on YouTube and 2.9 lakhs on Instagram. He has also shared the recommendations of trading through telegram channels, whom all those who did the coursesScribe.
SEBI has banned Asmita Patel and her husband Jitesh Patel in the securities market till further orders. Jitesh Patel was the director of the firm. Apart from this, the entry of three proprightry firms and their proprietors in the market has also been banned.
Patel was an authorized person of a stockbroker and run several trading courses through his school. Regulatory action was taken after the complaint of 42 participants of these courses.
SEBI’s order shows that Asmita Patel earned a net profit of Rs 12.3 lakh during 2019-20 to January 2024. This figure is reversed by her claim in which she has said that she manages hundreds of crores of rupees with her proprietary system.
SEBI has directed these units to discontinue the services of unregistered investment advisors and research analysts.
The trading school automatically submitted the settlement application in this matter. However, SEBI has clarified that applying for settlement does not stop proceedings and there is no legal restriction on passing the order.