SAT directs Avadhut Sathe Trading Academy to deposit ₹100 crore

Tribunal asks trading academy to disclose assets, restrains alienation of fixed assets

The Securities Appellate Tribunal (SAT) on Thursday directed Avadhut Sathe Trading Academy (ASTA) and its directors Avadhut Sathe and Gouri Sathe to deposit ₹100 crore in connection with a December 2025 order of the Securities and Exchange Board of India (Sebi), which had ordered impounding of ₹546 crore as alleged “illegal gains”.

 

The tribunal granted partial relief to the appellants by modifying Sebi’s directions on trading restrictions and account freezes, making them conditional on the deposit of the said amount.

 

“The appeal is allowed in part. The directions in paragraph 83(ix) are modified and the directions stipulated in paragraphs (iii), (vi) and (vii) shall cease to apply upon the appellants depositing a sum of ₹100 crore in terms of direction 83(v),” SAT presiding officer Justice PS Dinesh Kumar noted in the order. 

SAT said it arrived at the ₹100 crore figure after taking into account the value of the academy’s fixed assets and a tax component of about ₹166 crore.

 

In its ex-parte interim order-cum-show cause notice, Sebi had alleged that ASTA was providing investment advisory (IA) and research analyst (RA) services without registration, under the guise of stock market training programmes.

While ASTA sought complete quashing of Sebi’s order, the tribunal declined to do so, observing: “In our considered opinion, in view of our finding that Sebi has made out a prima facie case of violation of IA and RA Regulations, the appellants shall not be entitled to such relief.”

 

The tribunal also directed ASTA and its directors to file an affidavit before Sebi’s whole-time member (WTM) disclosing full details of their assets, supported by valuation certificates, along with an undertaking not to alienate their fixed assets.

 

During the hearing, ASTA argued that its courses were purely educational and that Sebi’s “harsh order” had damaged its reputation. It also contended that the regulator should have granted a hearing before passing the interim order.

 

SAT, however, noted that the appellants had consciously refrained from making submissions on the merits, as the matter was still at the stage of filing a reply to the show-cause notice. The tribunal also observed that ASTA continued to upload testimonials on its YouTube channel even after receiving an administrative warning from Sebi.

 

Clarifying the scope of its observations, SAT said they were limited to adjudicating the appeal and directed that the WTM pass a final order “wholly uninfluenced” by the tribunal’s findings. ASTA has been asked to file its reply within four weeks, with Sebi directed to conclude the proceedings as expeditiously as possible.