"Now this phenomenon has become too big."
Asmita Patel is an Indian financial influencer who calls herself the “She-Wolf of the stock market,” a play on The Wolf of Wall Street.
She built a massive online following, with over half a million YouTube subscribers and hundreds of thousands more on Instagram. Her stock trading courses cost thousands of rupees.
But in February 2025, India’s market regulator, the Securities and Exchange Board of India (SEBI), halted her operations.
It barred Patel and six others from trading, alleging they sold illegal stock tips disguised as investor education, raking in millions of rupees.
SEBI’s action is part of a broader crackdown on social media influencers offering get-rich-quick trading advice under the guise of education.
India’s post-pandemic market boom saw a surge in small investors.
Online trading accounts jumped from 36 million in 2019 to over 150 million in 2024, according to brokerage firm Zerodha.
Many of these new investors turned to social media for guidance, fueling the rise of self-proclaimed “investment gurus” like Patel.
With just 950 registered investment advisors and 1,400 financial planners in the country, these influencers filled a gap, amassing huge followings.
Most operated without regulatory approval, blurring the line between education and financial advice.
SEBI has responded by banning at least a dozen influencers, including a Bollywood actor, from offering trading tips.
The regulator also prohibited brokerages and market players from working with influencers who push illegal stock tips or make misleading claims about returns.
New rules prevent educators from providing real-time trading tips or using live market data for teaching.
SEBI found Patel and her husband, Jitesh, steering students and investors toward specific stocks through their advisory firm.
They allegedly used private Telegram channels, Zoom calls and courses to share tips without proper registration.
The regulator acted after 42 people reported trading losses and demanded refunds. It now plans to seize millions of rupees that Patel and her associates earned from course fees between 2021 and 2024.
With markets cooling and regulators tightening oversight, other influencers face a credibility crisis. Many investors have accused high-profile figures of faking success to sell courses and earn from brokerage referrals.
SEBI’s order revealed Patel made just £10,800 in trading profits over five years but earned more than £9 million from selling courses.
While SEBI’s crackdown aims to protect small investors, critics say its actions have been slow and unclear.
Sucheta Dalal, a veteran financial journalist, said:
“It should have acted a few years ago when trading sites started paying influencers to promote their products.
“Now this phenomenon has become too big.”
Former SEBI officer Sumit Agrawal said the regulator targeted a few influencers rather than setting a clear policy.
He said: “Curbing unregulated stock tips is necessary, but requiring trading schools to use three-month-old data and avoiding live market strategies crosses into over-regulation.”
Manish Singh, a chartered accountant and YouTuber with half a million followers, creates market analysis videos.
He says SEBI’s new rules have created uncertainty:
“Even genuine content creators trying to guide people in the right direction will lose subscribers and brand deals as companies hesitate to work with them.”
Balancing enforcement with fair regulation will be tough, Agrawal said.
Technology evolves fast, and the law is always “playing catch-up”.
SEBI’s challenge is to monitor online content effectively without stifling financial education.
It has more authority than regulators in advanced markets like the US, including powers to freeze bank accounts and ban trading without court approval.
Reportedly, SEBI has again sought expanded powers—its second request in two years—to access call records and social media chats for investigations into influencer-led market violations.
Experts warn that the regulator must avoid overreach and ensure legitimate educators aren’t caught in the crossfire.
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