SEBI Takes Major Action Against Finfluencer Avadhut Sathe; Impounds ₹546 Crore For Providing Unregistered Investment Advice
Pranav B Prem
The Securities and Exchange Board of India (SEBI) has imposed a sweeping interim order against finfluencer Avadhut Sathe and his institution, Avadhut Sathe Trading Academy, after concluding that they were operating unregistered investment advisory services under the guise of stock market education. SEBI has impounded ₹546.16 crore in unlawful gains and banned Sathe from accessing the securities market. The regulator also found that several participants who acted on his instructions suffered losses, while Sathe himself often did not take the same trades, contradicting his portrayal of successful strategies.
The interim order, issued by Whole Time Member Kamlesh C. Varshney, further proposes disgorgement of ₹601 crore plus interest, reflecting the fees collected from students and investors. The regulator held that the activities of Sathe and the academy “prima facie does not appear to be case of providing educational services,” highlighting that the structure of the business was intended to convey stock-specific advisory disguised as training.
SEBI has extended the restraint not only to Sathe but also to Avadhut Sathe Trading Academy Private Limited and his wife Gouri Sathe, holding them complicit in the illegal activity. The order further bars them from the use of live market data and prohibits banks from allowing any withdrawals from their accounts without SEBI’s approval, except for transfers into impounded fixed deposits. The interim order also functions as a show-cause notice.
An extensive examination during FY 2023–24 revealed that Sathe routinely issued stock-specific instructions during live paid sessions, displaying live trades and giving participants precise calls. Transcript excerpts reproduced in the order show Sathe telling students during a Kotak Bank analysis, “I would rather buy 1 to 1.5 Cr worth of Kotak Bank. My Stop Loss is clear…” and during a discussion on Power Finance Corporation, “This is why I picking this stock, PFC, to buy.” Participants acted immediately on such instructions, with SEBI finding that in 33 out of 34 instances examined, trades were executed by attendees shortly after Sathe issued calls.
The video recordings seized during the search revealed that Sathe regularly gave entry points, stop-loss levels, targets, risk-reward ratios, and capital deployment strategies using live market data. In one session, participants confirmed placing trades mid-class after Sathe’s indication. In another set of sessions, Sathe told learners, “ITC… this is another stock that I wish to buy tomorrow,” and “Kotak Bank is a large opportunity for me… if Stop Loss is 4%, then we can park 50% of capital in the stock.” SEBI held that the formulation, language and structure of delivery “effectively induced course participants to trade in the securities” and demonstrated advisory conduct masquerading as stock-market training.
SEBI also flagged the academy’s misleading profit claims and fabricated testimonials. Promotional material touted success stories such as “₹1 crore in 2.5 years” and “₹43.2 lakh profits,” but trading records showed the individuals featured actually incurred losses. The regulator observed that such material appeared crafted to induce enrolments rather than reflect real performance. Additionally, data revealed that 65% of mentorship participants, who paid ₹6.75 lakh each, incurred losses during the six-month period following the course, contradicting the academy’s promotional claims.
Another key finding was that Sathe and the academy themselves incurred cumulative trading losses of over ₹6.19 crore, while continuing to project success and guarantee extraordinary returns. Sathe also claimed that he merely taught concepts of market structure and psychology, but SEBI held that the call patterns and participant trading behaviour conclusively showed advisory activity rather than academic instruction.
SEBI further found that advisory recommendations were not limited to live sessions but were also disseminated through paid WhatsApp groups, carrying daily trade calls, forecasts, and stock-specific recommendations—reinforcing that the activity was neither pedagogical nor incidental. Besides the restraint from the securities market, SEBI has directed the academy to withdraw all websites, advertisements, videos, and promotional material related to advisory-like activities. The banks have been directed to freeze outgoing transactions without SEBI’s permission. The impounded funds, according to the order, include money collected from students for the unregistered advisory activity, and the regulator has indicated that further penalties and refund directions may follow.
With the interim order coming into force, Avadhut Sathe, Gouri Sathe, and Avadhut Sathe Trading Academy are barred from accessing the securities market, prohibited from using live market data, and restricted from operating bank accounts except for the creation of impounded fixed deposits. ₹546.16 crore has been impounded, and the order simultaneously acts as a show cause notice, requiring them to explain within 21 days why permanent restraints, disgorgement with interest, and further penalties should not be imposed.
