SEBI Unleashes Fury: Influencer Avadhut Sathe Banned, Rs 546 Crore Clawed Back!

The Securities and Exchange Board of India (SEBI) has taken decisive action against financial influencer Avadhut Sathe and his firm, Avadhut Sathe Trading Academy Pvt Ltd (ASTAPL), by barring them from the securities market. SEBI has also ordered the disgorgement of Rs 546.16 crore, representing alleged unlawful gains made from unregistered investment advisory and research analyst activities.

SEBI's Investigation and Findings

• SEBI's interim order, a detailed 125-page document, revealed that Avadhut Sathe and ASTAPL were collecting funds and providing services without the requisite SEBI registration.
• The investigation indicated that funds were collected in the accounts of ASTAPL and Avadhut Sathe (AS).
• Gouri Avadhut Sathe was involved in the company's daily operations but was not found to be offering any investment advisory or research analyst services.
• SEBI observed that Sathe devised a scheme to lure course participants by offering recommendations to buy or sell securities for a fee, disguised as educational content.
• The regulator explicitly stated that none of the accused entities were registered with SEBI as investment advisors or research analysts.

Unlawful Gains and Disgorgement Order

• SEBI's whole-time member, Kamlesh Chandra Varshney, stated that ASTAPL and AS are jointly and severally liable for the disgorgement of Rs 5,46,16,65,367/-
• The total amount collected from over 3.37 lakh investors was Rs 601.37 crore.
• This sum was collected through misleading solicitations and inducements to deal in securities based on advice issued without mandatory registration.

SEBI's Directives

• ASTAPL and Sathe have been ordered to cease and desist from offering unregistered investment advisory and research analyst services.
• They are prohibited from holding themselves out as investment advisors or research analysts.
• Furthermore, they must not use live data for any purpose and are forbidden from advertising their own performance or that of course participants or investors.
• SEBI emphasized the need for urgent preventive action to stop ASTAPL/AS from misleading the public and collecting fees under the guise of unregistered activities.

Promotional Tactics

• SEBI examined the activities for FY 2023-2024 and conducted a detailed investigation from July 1, 2017, to October 9, 2025.
• The company and its founder were found to selectively showcase profitable trades by participants.
• Training programs were promoted with claims that attendees consistently generated high returns from stock trading.

Impact

• This SEBI action is a strong regulatory statement against unregistered financial influencers and advisory services, aiming to protect retail investors. It underscores the importance of compliance and may lead to increased caution among similar entities. The order seeks to recover significant amounts earned through non-compliant means, potentially impacting the financial standing of the involved parties and restoring confidence in legitimate advisory channels.
• Impact Rating: 8

Difficult Terms Explained

• Securities and Exchange Board of India (SEBI): India's primary regulator for the securities market, responsible for protecting investors and ensuring market integrity.
• Securities Market: The marketplace where financial instruments like stocks, bonds, and derivatives are bought and sold.
• Disgorge: To surrender or pay back money obtained illegally or unfairly.
• Unlawful Gain: Profit earned through illegal or prohibited means.
• Investment Advisory: Providing advice about investing in securities for a fee.
• Research Analyst: Individuals or entities that prepare and issue research reports concerning securities.
• Interim Order: A temporary order issued by a court or regulatory body before a final decision is made.
• Show Cause Notice: A notice issued by a regulatory body asking a party to explain why a certain action should not be taken against them.
• Prima Facie: Based on initial observation or evidence, appearing to be true until proven otherwise.
• Liability: Legal responsibility for an act or omission.