Asmita Jitesh Patel, a director of the well-known Asmita Patel Global School of Trading Pvt Ltd, appears to have constructed her business empire through exaggerated claims and false promises of effortless wealth.
One of the most troubling aspects of her approach was the irresponsible advice given to participants in her courses and workshops, including urging them to borrow money for trading and to quit their jobs to pursue trading full-time.
On February 6, the Securities and Exchange Board of India (SEBI) froze illegal profits totalling nearly ₹54 crore and demanded that the school and its directors explain why approximately ₹104 crore in fees should not be confiscated.
SEBI officials found that representatives from the school, including Patel, cited numerous examples of individuals abandoning their jobs and achieving remarkable success after taking her courses or following her trading strategies. For instance, it was claimed that a vice president of a large company increased his trading capital from ₹30 lakh to ₹3 crore, a chartered accountant boosted his capital from ₹30 lakh to ₹12 crore, and an engineer left his job to become a full-time trader, accumulating ₹80 lakh in trading capital.
The SEBI order highlighted that “students/investors/participants were encouraged to leave their jobs and join MPAT (a course offered by her institute) in order to achieve significant success.” Participants were even advised to withdraw from mutual fund investments or to use borrowed money if they lacked sufficient capital. In a recorded conversation with a course participant, Patel suggested borrowing for trading, recommending that the interest rate not exceed 18 per cent.
Over multiple discussions, stock trading was portrayed as a lucrative business with continuous profits. One student was told to anticipate returns of 35-40 per cent, and the risk-reward ratio was touted as 1:3, among other enticing figures.
While SEBI regulations allow minors to hold demat and trading accounts, the operation of these accounts requires the involvement of a guardian, and trading accounts can only be used for selling securities acquired through gifts, transfers, or regulatory directives. According to SEBI’s guidelines, “a minor cannot enter into a contract with a stock broker to buy or sell any security.”
In one video, Patel downplayed the necessity of understanding financial markets or statements, stating that even someone with a basic education who could perform simple arithmetic could invest in stocks.
Patel frequently referred to herself using grandiose titles, dubbing herself the “She Wolf of the stock market” and the “options queen,” asserting that her strategies could yield returns of up to 300 per cent. However, SEBI’s investigation revealed that from 2019 to January 2024, the school and Patel registered trading profits of merely ₹12.28 lakh.
She also claimed to manage portfolios totalling ₹140 crore and oversee funds worth ₹283 crore, but the investigation indicated these figures were grossly inflated. The actual turnover from the trades associated with her accounts and the school was just over ₹15.27 crore, a fraction of her claim regarding the ₹140 crore portfolio.
SEBI concluded that Patel’s assertions about managing a substantial portfolio “appear completely false and were likely made to entice participants to various courses.”
Furthermore, the agreements signed by clients and students enrolling in her programs contained peculiar clauses, one of which stated that any loss in trading capital during the program would not affect the participant’s “mental stability, physical health, and social well-being.”
The agreements included a disclaimer asserting that the institute does not endorse get-rich-quick schemes, emphasizing a belief in hard work and value addition. However, SEBI’s preliminary findings suggested that “despite disclaimers in the agreements with students/investors/participants asserting that it was not a get-rich program and that no returns were guaranteed, the actual circumstances stood in stark contrast.”