SEBI Unleashes Shockwave: Influencer Avadhut Sathe Banned, Ordered to Return ₹546 Crore for Unregistered Advisory!

The Securities and Exchange Board of India (SEBI) has taken stringent action against financial influencer Avadhut Sathe and his company, Avadhut Sathe Trading Academy Pvt Ltd (ASTAPL). In a significant move aimed at protecting investors, SEBI has barred both Sathe and his firm from operating in the securities market. Furthermore, they have been directed to disgorge a staggering ₹546 crore, which represents the alleged unlawful gains accumulated from unregistered investment advisory and research analyst services.

SEBI's Interim Order

SEBI, in a comprehensive 125-page interim order cum show cause notice, stated that funds were collected in the accounts of ASTAPL and Avadhut Sathe. The investigation revealed that Avadhut Sathe played a primary role in devising a scheme to lure course participants into trading specific stocks. Recommendations for buying and selling securities were allegedly provided by Sathe under the pretext of imparting education, despite the absence of necessary SEBI registration.

Unregistered Operations

SEBI noted that neither ASTAPL nor Avadhut Sathe are registered with the regulator as investment advisors or research analysts. Nevertheless, they have been providing such services under the guise of stock market training programs. The regulator found that they collected ₹601.37 crore from more than 3.37 lakh investors, recklessly misleading and inducing them to deal in securities based on unverified advice and analysis.

Key Directives from SEBI

SEBI has ordered Avadhut Sathe and ASTAPL to cease and desist from offering unregistered investment advisory and research analyst services. They are also prohibited from acting as or holding themselves out as investment advisors or research analysts. Additionally, the noticees are forbidden from using live data for any purpose and from advertising performance or profits of themselves or their course participants.

Rationale for Urgent Action

The regulator emphasized the necessity of taking urgent preventive action to stop ASTAPL and Avadhut Sathe from misleading the public, influencing investors, collecting fees, and engaging in unregistered activities. This interim order aims to immediately halt these alleged unregistered operations.

Investigation Details

The investigation conducted by SEBI covered the period from July 1, 2017, to October 9, 2025. During this time, SEBI examined the activities of ASTAPL and its founder-trainer, Avadhut Sathe, noting the selective showcasing of profitable trades and marketing claims of high returns for attendees.

Impact

This action by SEBI is crucial for upholding market integrity and ensuring investor protection by cracking down on unregistered financial advisory services. It serves as a strong warning to other influencers and entities operating without proper registration. The significant disgorgement amount underscores SEBI's commitment to recovering ill-gotten gains. The decision could lead to increased scrutiny of financial influencers and educational programs in the stock market space.
Impact Rating: 8/10

Difficult Terms Explained

• SEBI (Securities and Exchange Board of India): India's primary regulator for the securities market, responsible for protecting investors and ensuring market integrity.
• Unregistered Investment Advisory: Providing advice on investing in securities without the mandatory registration with SEBI.
• Research Analyst: An individual or entity that prepares or issues research reports or makes recommendations on securities, requiring SEBI registration.
• Disgorge: To give up money or proceeds obtained illegally or unlawfully.
• Prima Facie: Based on the initial impression or evidence; before further investigation or proof.
• Interim Order cum Show Cause Notice: A preliminary order from a regulator that stops certain activities immediately (interim order) and also requires the party to explain why a final order should not be passed (show cause notice).
• Securities Market: The market where securities like stocks and bonds are bought and sold.
• Unlawful Gain: Profit obtained through illegal or illicit means.