There are big revelations about Asmita Jitesh Patel, one of the directors of the famous Asmita Patel Global School of Trading Private Limited, who has given stock market training. It is coming out that Asmita Patel exaggerated the claims and has created her umpire by showing false dreams of becoming rich. However, this is also the worse that he encouraged the people who attended the course/workshop to take a loan for trading and leave their jobs for full time trading. Market regulator SEBI has seized ₹ 53.67 crore from Asmita Patel Global School of Trading and 5 other institutions on 6 February and is now hanging the sword of action at a fee of ₹ 104.6 crore taken in the name of paid cord.
‘Careless advice’
SEBI officials found that people associated with the school, including the director, were offering examples to the professionals after adopting their courses or adopting their strategies. For example, a Vice President of a big company increased the trading capital from Rs 30 lakh to Rs 3 crore, a chartered accountant made capital from Rs 30 lakh to Rs 12 crore, and an engineer for full time trading Quitted his job and made trading capital up to Rs 80 lakh. SEBI’s order has revealed that students, investors, people preparing for competitive exams were motivated to quit their jobs and join their courses MPAT.
The school also advised to use money from mutual funds or if the capital is low, then it was also advised to use the money of others! In a recorded conversation with a person for this course, Asmita advised her to take loans for trading and also said that the interest rate of debt should not exceed 18 per cent. The school introduced stock trading as a business, where anyone can make more money continuously. A student was asked to expect a 35–40 percent profit, and the risk-reward ratio was introduced as 1: 3.
In the investigation by Moneycontrol for SEBI’s facts, there were also cases in which 10 -year -old small child was also encouraged to join the stock market.
According to SEBI rules, minor people can keep demat and trading account. However, only their parents can run a demat account and can be used for the sale of shares received through a trading account gift or donation, transfer between family members or the government/regulator’s instructions or orders. There is also a video in which Asmita Patel is saying that the basic understanding of financial market or financial statement is not very important, even those who pass the eighth grade who know how to connect. They can also invest in the stock market.
‘Options Queen’ said terrible lies about their trading
Asmita Patel used to call herself ‘She Wolf of Stock Market’ and ‘Options Queen’, whose strategy can get 300 per cent of returns. However, SEBI investigation revealed that between 2019-20 and January 2024, the school and Asmita Patel made a profit of only Rs 12.28 lakh from trading. She claimed that she was managing a portfolio worth Rs 140 crore and funds worth Rs 283 crore. However, SEBI investigation revealed that the school and Asmita Patel had a more than Rs 15.27 crore turnover from the trading accounts, which is about tenth of the Rs 140 crore portfolio claim.
SEBI seized ₹ 53.67 crore from ‘Asmita Patel Global School of Trading’; Action can also be taken at a fee of ₹ 104.6 crore