SEBI Bars Avadhut Sathe Academy for Unregistered Advisory; Impounds ₹546 Crore

The Securities and Exchange Board of India (SEBI) on Thursday issued an ex parte interim order against Avadhut Sathe Trading Academy (ASTA) and its founder Avadhut Dinkar Sathe, restraining them from dealing in securities and impounding alleged unlawful gains worth ₹546 crore. 

SEBI said the academy was operating as an unregistered investment adviser and research analyst, while presenting its activities as stock market education.

According to SEBI, the entity promoted stock-specific recommendations, live trading calls and high-return promises as part of its courses. 

How the Investigation Unfolded

SEBI’s probe covered the period from July 1, 2017, to October 9, 2025. During this time, ASTA reportedly generated a fee pool of ₹601 crore, all of which is now under scrutiny. The regulator found that paid subscribers received targets, stop-loss levels, option strategies and capital allocation advice through closed WhatsApp groups and live sessions.

The order highlights seized video recordings and chat logs that showed Sathe using real-time price charts and displaying his own open positions while students confirmed placing trades based on his cues. SEBI concluded that the academy’s operations resembled advisory and research activity rather than mere training.

Prior Warnings Ignored

SEBI noted that the academy had already received an administrative warning in March 2024 for allegedly showcasing selective profitable trades and misrepresenting performance. Despite this, the academy continued publishing testimonial-driven promotional videos that claimed extraordinary returns, while many participants reportedly suffered losses.

Also Read: HDFC Bank Faces Two RBI Penalties in 2025!

Conclusion

SEBI’s order underscores the regulator’s increasing vigilance against unregistered market advisers operating under the disguise of education. Investors are encouraged to verify advisory registrations, rely on transparent disclosures and maintain disciplined investing practices through a secure demat account to safeguard their market participation.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.