Sebi bans fininfluencer Asmita Patel, 5 others from mkt, impound illegal gains of over Rs 53 cr
NEW DELHI, Feb 09, (PTI): Markets regulator Sebi has banned six entities, including Asmita Patel Global School and fin-influencer Asmita Patel, from the capital markets for alleged unregistered investment advisory services and directed to disgorge over Rs 53 crore collected as fees course participants for various courses.
Sebi through an interim order cum show cause notice passed on Thursday prohibited six entities, including Asmita Patel Global School of Trading Pvt Ltd (APGSOT), Asmita Jitesh Patel, Jitesh Jethalal Patel, King Traders, Gemini Enterprise and United Enterprises, from the capital market.
The Securities and Exchange Board of India (Sebi) has also asked the six entities to explain why another Rs 104.63 crore should not be collected as fees for various programmes and should not be seized as well, according to a Sebi order.
The case pertains to individuals enrolling in trading courses provided by Asmita Patel Global School Of Trading. The Sebi order said that they were misled by exaggerated promises of profits and forced into paying high fees for minimal or ineffective trading education.
YouTuber and financial influencer Asmita Patel portrays herself as the 'She Wolf of the stock market' and the 'options queen' and claimed to have mentored over one lakh students/investors/participants worldwide. As per the complainants, she (Asmita) has assets to the tune of Rs 140 crore using her proprietary system.
The regulator noted that each entity has played specific roles at various stages which have prima facie, been found to violate Sebi's rules.
Further, Sebi revealed that, prima facie APGSOT along with the Asmita and Jitesh devised a scheme wherein students/investors/participants were lured to trade in specific stocks and told to open a trading account with ABC Ltd.
Recommendations of buy/sell of specific securities were provided and uploaded on telegram channels owned by APGSOT. The acts of the entity make it evident that it was providing investment advice/ research analyst services to students/investors/participants for consideration in the pretext of imparting education, the 129-page order said.
The regulator also pointed out that the APGSOT collected fees from course participants through King Traders, Gemini Enterprise and United Enterprises directing them to pay the course fees to the bank accounts of these entities.
According to Sebi, this was not a one-time arrangement but a regular practice followed by the Asmita Patel Global School of Trading to route funds through different entities.
Sebi noted that these six entities are jointly and severally liable for impounding Rs 53.67 crore collected as fees from participants for courses such as, LMIT (Let's Make India Trade), MPAT (Master's in Price Action Trading) and Options Multiplier (OM) offered by the Asmita Patel Global School of Trading.
By indulging in these practices, APGSOT, its director Asmita, and Jitesh were directed by Sebi to cease and desist from offering unregistered investment advisory or holding themselves out to be as investment advisors/ research analysts.
They have also been ordered to cease to solicit or undertake any other unregistered or fraudulent activity in the securities market, directly or indirectly, in any manner whatsoever, Sebi said.
However, the markets watchdog clarified that findings in this order are prima facie findings and the entities have full opportunity to provide their defence and prove their innocence. This prima facie finding should also be viewed in that manner and should not be taken as a final verdict against anyone.
Sebi has examined APGSOT and its directors following a complaint from a group of 42 investors alleging unauthorised investment advisory activities.
The regulator conducted an examination covering the period from August 2019 to October 2023, focusing on APGSOT, its director Asmita -- who is also an authorised person of registered stockbroker ABC Ltd -- and Jitesh, along with proprietary firms King Traders, Gemini Enterprise, and United Enterprises.
According to Sebi, APGSOT was allegedly providing stock buy/sell recommendations through private telegram channels, Zoom meetings, and emails, besides offering educational courses. The probe aimed to determine whether APGSOT was offering investment services without the necessary Sebi's registration, as mandated under Investment Adviser (IA) rules.
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India being forced to normalise ties with China largely on Beijing's terms: Congress
New Delhi (PTI): With Prime Minister Narendra Modi on a visit to Japan and then scheduled to travel to China, the Congress on Friday alleged that India is being "forced" to normalise its relations with China which is "trying to take advantage of the downturn in Indo-US ties".
The opposition party also took a swipe at the prime minister, saying the long-suffering people of Manipur are still awaiting his visit but he has "simply washed his hands off" the state.
Congress general secretary in-charge communications Jairam Ramesh said, "The Frequently Flying (and more frequently lying) Prime Minister is off to Japan and China."
"His visit to China is a moment of some reckoning for India. We are being forced to normalise relations with China -- largely on their terms, with China trying to take advantage of the downturn in Indo-US ties as well," Ramesh said in a post on X.
"China's jugalbandi with Pakistan during Operation Sindoor - revealed by our own military establishment itself - has been forgotten," the Congress leader said.
"The extraordinarily bizarre statement of the Prime Minister of June 19, 2020, when he proclaimed that 'Na koi hamari seema mein ghus aaya hai, na hi koi ghusa hua hai' greatly hurt our negotiating strength," Ramesh claimed.
It left India with little room to manoeuvre and this visit, despite the failure to restore the pre-April 2020 status quo, is the inevitable result of that "notorious and cowardly clean chit", he said.
"Even as the PM jets off abroad, the long-suffering people of Manipur are still awaiting his visit there to heal the wounds of May 2023," he said.
But the PM simply and "stubbornly refuses" to engage with the state, its political parties and leaders, civil society organisations, and the people themselves, he alleged.
"He (Modi) has simply washed his hands off Manipur - which stands as a tragic testimony to the blundering of the Union Home Minister," Ramesh claimed.
Embarking on a tour of Japan and China, Prime Minister Modi on Thursday exuded confidence that the visit would further national interests and priorities, and contribute to building fruitful cooperation in advancing regional and global peace.
In the first leg of his trip, Modi is visiting Japan on August 29 to 30, and he arrived in Tokyo this morning.
In his departure statement, Prime Minister Modi said his visit to Japan will be an opportunity to strengthen civilisational bonds and cultural ties between the two countries.
From Japan, Modi will travel to China on a two-day visit to attend the annual summit of the Shanghai Cooperation Organisation (SCO) in Tianjin on August 31 and September 1.
On Sunday, the prime minister is set to hold talks with Chinese President Xi Jinping that is expected to focus on further steps to normalise bilateral ties that came under severe strain following the eastern Ladakh border row.
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