The Securities and Exchange Board of India (SEBI) has taken action against Asmita Patel Global School of Trading Pvt. Ltd. (APGSTPL) and its directors for allegedly violating securities laws. This action follows complaints from 42 individuals who claimed to have suffered financial losses after enrolling in the company’s trading courses.
Key Allegations & SEBI Investigation
SEBI conducted an investigation into APGSTPL’s activities from August 26, 2019, to October 31, 2023, and found multiple violations, including:
1. Unregistered Investment Advisory & Fraudulent Activities
- APGSTPL was allegedly providing stock buy/sell recommendations through private Telegram channels, Zoom meetings, and emails, without SEBI registration.
- The company misrepresented trading courses as investment advice, leading participants to believe they would achieve guaranteed profits.
2. Exorbitant Course Fees & Misleading Claims
- The company charged ₹7,00,000 + 18% GST (total ₹8,26,000) for its Master’s in Price Action Trading (MPAT) course.
- Participants were allegedly pressured to take loans, sell mutual funds, or borrow money to enroll in the courses.
- Claims were made that students made crores after taking the course, though no evidence supported this.
3. Unauthorized Collection of Funds
- Fees were collected through multiple bank accounts linked to different proprietary firms (King Traders, Gemini Enterprise, and United Enterprises), raising concerns about money laundering.
- Some payments were allegedly accepted in cash, bypassing GST regulations.
4. Forced Trading & Manipulation
- Students were allegedly required to open trading accounts with a particular stockbroker (ABC Ltd.) where Asmita Patel acted as an Authorized Person.
- Participants were given specific trade recommendations, with claims that losses were minimal or non-existent.
Course & Training Programs Under Investigation
The following paid courses were named in the SEBI report:
- Master’s in Price Action Trading (MPAT)
- Let’s Make India Trade (LMIT)
- Options Multiplier (OM)
- Trend Following Income System (TFIS)
- The Freedom Project (TFP)
- OneLife
- Unleash The Trader Within (UTW)
SEBI's Findings & Legal Violations
SEBI found that APGSTPL and its directors:
- Operated as unregistered investment advisors under the SEBI (Investment Advisers) Regulations, 2013.
- Violated the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 by making misleading claims.
- Failed to disclose risks and potential losses to participants.
SEBI’s Actions & Interim Order
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- Immediate ban on APGSTPL and its directors from offering trading courses, investment advice, or handling client funds.
- All bank accounts linked to the company & associated firms were frozen.
- A show-cause notice was issued to APGSTPL and its directors, requiring them to justify why further legal action should not be taken.
Impact on Investors & General Public
- Participants who lost money may file complaints with SEBI for refunds.
- Investors are warned against unregistered advisory services and should verify SEBI registrations before subscribing to stock market courses.
- This case highlights the importance of financial literacy and the need for due diligence before enrolling in expensive trading programs.