The Securities and Exchange Board of India (Sebi) has delivered a significant directive against the Avadhut Sathe Trading Academy and its founder, the finfluencer Avadhut Sathe, ordering them to refund Rs 546.18 crore to investors. This decision follows an investigation by the market regulator, which concluded that the academy had been operating as an unregistered investment advisor and research analyst while presenting itself as a stock market education provider.
In its final order issued on Friday, Sebi barred both the academy and Avadhut Sathe from accessing the securities market for a period of two years or until they have fully complied with the refund directions, whichever occurs later. Additionally, the regulator imposed a six-month market ban on Gouri Sathe, the wife of the founder, in connection with the case.
The regulator’s investigation revealed that the academy’s activities extended far beyond general stock market education. According to Sebi, Sathe and his team provided specific securities recommendations, detailing entry and exit points, stop-loss targets, and complex trading strategies. These services were delivered through training sessions and dedicated WhatsApp groups, all of which fall under the category of investment advisory services requiring mandatory registration with the market regulator.
Sebi also highlighted that the academy utilized misleading marketing tactics to attract participants. The probe discovered that the entity circulated promotional videos and testimonials that highlighted the successful, profitable trades of certain course participants while intentionally concealing the overall trading losses suffered by the broader student base. This deceptive practice persisted despite a formal administrative warning issued to the academy on March 1, 2024, which explicitly cautioned them against selective disclosure and misrepresentation of trading performance.
Records from the investigation indicate that the academy and Sathe had collected a total of Rs 601.37 crore from participants since its inception. During the proceedings, the regulator rejected arguments presented by the academy, which claimed that its programs were purely educational in nature and that the fees collected should not be classified as income derived from unregistered advisory services.
Under the terms of the order, the academy and Avadhut Sathe are required to jointly refund the specified amount of Rs 546.18 crore within five months. Furthermore, they have been directed to deposit an additional Rs 67.87 crore as interest into Sebi’s Investor Protection and Education Fund. This interest amount was calculated at a rate of 12 percent per annum, spanning from October 10, 2025, through the date of the final order.
The regulator’s disciplinary action also included the imposition of substantial monetary penalties. Sebi fined the academy Rs 6 crore, while Avadhut Sathe faces a personal penalty of Rs 4 crore. Gouri Sathe was fined Rs 1.5 crore. This ruling serves as a stern reminder of the regulator's ongoing efforts to curb the influence of unregistered advisors who may be misleading retail investors in the financial markets.
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