SEBI Issues Interim Order Against Avadhut Sathe Trading Academy for Unregistered Advisory Activities
The Securities and Exchange Board of India (SEBI) has recently taken decisive action against Avadhut Sathe Trading Academy Pvt Ltd (ASTAPL), ordering the recovery of ₹546.16 crore for allegedly conducting investment advisory services without registration. This move comes amidst findings that the company and its promoters, including Avadhut Sathe and Gouri Sathe, collected over ₹601 crore from around 3.37 lakh clients under the guise of stock market education.
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Background of the Case
Avadhut Sathe, well-known in retail trading circles, grew a following through seminars, mentorship programs, and social media channels like Telegram, promoting stock market strategies and trading psychology courses. SEBI’s investigation revealed that beyond education, ASTAPL was providing specific, actionable investment advice such as stock recommendations, trading setups, target prices, stop-loss levels, and real-time trade guidance. These services require registration as an investment adviser or research analyst, which the company and its promoters lacked.
Parties Named in the Order
The order singles out three noticees: Avadhut Dinkar Sathe, founder and main trainer; Gouri Avadhut Sathe, director responsible for administrative and financial operations; and ASTAPL, the corporate entity involved in delivering the programs and collecting fees. SEBI concluded that all three played roles in carrying out unregistered advisory activities.
Key Findings from SEBI
SEBI’s detailed investigation, which includes evidence from inspections and digital data, highlights several important points:
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The line between education and advisory was crossed, with ASTAPL programs offering stock-specific buy/sell recommendations.
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Marketing was found to be misleading, showcasing only profitable trades and masking losses, creating a false impression of guaranteed returns.
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The scale of operations was massive, involving hundreds of thousands of clients and substantial money flow amounting to ₹601 crore.
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SEBI’s August 2025 raids uncovered numerous materials such as Telegram group messages with live trade calls, spreadsheets of recommendations, and recordings of live trading rooms.
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The unlawful revenue generated through these advisory activities totals ₹546.16 crore, which SEBI subject to disgorgement.
Timeline of Events
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Between 2017 and 2022, ASTAPL expanded its reach with courses and mentorship programs.
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From 2023, SEBI started receiving complaints regarding unregistered advisory services.
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In August 2025, SEBI executed search and seizure operations to collect critical evidence.
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By late 2025, forensic and financial analysis confirmed the non-compliance.
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SEBI issued the interim order in December 2025, freezing assets and restricting market activities of the noticees.
SEBI’s Interim Directions
SEBI has barred the noticees from dealing in securities in any capacity and ordered them to stop all advisory-like activities, including courses, Telegram groups, live sessions, and social media stock tips. The ₹546.16 crore identified as illegal gains has been impounded, and banks have been instructed to monitor and restrict related transactions. A show cause notice requires the accused parties to respond why final penalties and permanent bans should not be imposed.
Broader Implications
This order is a strong message for trading academies and financial influencers, emphasizing that investment advice cannot be disguised as education to avoid regulation. Given the large number of investors involved, SEBI’s action focuses on protecting retail investors from potentially misleading and harmful practices.
Impact on Avadhut Sathe and ASTAPL
The immediate restrictions greatly hamper ASTAPL’s business model, banning all forms of trading advice and market participation. Depending on the final decision, further penalties or refunds may be ordered, possibly impacting their business significantly.
What Lies Ahead?
The accused parties must respond to SEBI’s notice and attend hearings. SEBI may uphold the interim orders, impose fines, and require client restitution. This case underscores SEBI’s growing vigilance over digital trading educators and influencers in safeguarding investor interests.
