In a crackdown on illegal investment advisory services operating under the guise of educational institutions, the Securities and Exchange Board of India (SEBI) has impounded Rs 53.67 crore earned by Asmita Patel Global School of Trading Pvt Ltd and five affiliated entities. This stock market training school runs various paid courses such as Let’s Make India Trade (LMIT), Master’s in Price Action Trading (MPAT), and Options Multiplier (OM).
The market regulator’s action follows complaints from 42 participants of these courses regarding the alleged unregistered investment advisory and research analyst services provided by the school.
ALSO READZerodha’s Nithin Kamath on SEBI’s new algo trading rules: API limits, strategy restrictions and other key details Investigation and Show Cause Notice
The SEBI, in an interim order, has asked the entities involved to show cause why Rs 104.6 crore collected as fees for various programmes should not be seized. The regulator has also instructed Asmita Patel, Asmita Jitesh Patel, and Jitesh Jethalal Patel to cease offering unregistered investment advisory and research analyst services. Additionally, the order prevents these individuals and all six entities from accessing the securities market.
Also Read JEE Main 2025 answer key: How to raise objections, last date and result update – Check details SEBI cracks down on Motilal Oswal, imposes Rs 7 lakh penalty for regulatory breaches Hard lesson for FIITJEE students SEBI disposes case against IIFL Securities
The notices are required to explain why SEBI should not demand they give up Rs 104.62 crore, along with interest, which includes the fees collected for the LMIT, MPAT, and OM courses. SEBI’s investigation found that the school was providing investment advice and research analyst services to participants under the guise of educational courses, with a consideration paid by participants.
Money Routing
SEBI’s investigation revealed that the school, along with its key figures, lured participants to trade specific stocks and instructed them to open trading accounts with ABC Ltd. The school provided buy/sell recommendations and uploaded them on Telegram channels owned by the school. The fees for these services were routed through King Traders, Gemini Enterprise, and United Enterprises, with participants directed to pay fees to their respective bank accounts.
This practice was not a one-off incident but a regular scheme that resulted in the impounding of Rs 53.67 crore from the proceeds generated by these unregistered services.
» Read More
