SAT to hear Avadhut Sathe appeal against Sebi's interim order on Jan 9

SAT will hear on January 9, 2026, Avadhut Sathe Trading Academy's appeal against Sebi's interim order impounding Rs 546 crore and barring it from the market

The Securities Appellate Tribunal (SAT) will hear on January 9, 2026, an appeal filed by Avadhut Sathe Trading Academy (ASTA) challenging a Securities and Exchange Board of India (Sebi) order that directed the impounding of ₹546 crore and barred the entity from the securities market.

 

In an interim order dated December 4, Sebi had alleged that ASTA was providing unregistered investment advisory and research analyst services under the guise of “education” and “training.”

 

The tribunal said the matter would be taken up after the court reopens following vacation, and that status quo would be maintained until then.

 

It also allowed partial de-freezing of the academy’s bank accounts, permitting withdrawals of up to ₹2.25 crore to meet monthly expenses.

 

“In view of the intervening vacations, we direct that the appellant may be permitted to draw ₹2.25 crore for this month,” said Justice P S Dinesh Kumar in the order.

 

The academy had sought a stay on Sebi’s directions and requested de-freezing of accounts to the extent of ₹₹5.25 crore per month.

 

Sebi opposed the plea, arguing that a significant portion of the claimed expenses — around ₹2 crore for advertisements and ₹1 crore for seminars — were not immediate or essential.

 

SAT granted Sebi six weeks to file its reply in the matter.

 

Appearing for the academy, senior counsel Janak Dwarkadas said the Sebi order was served on December 11 and described it as “out of the blue”.

 

He contended that it amounted to an “economic death” of the enterprise based on a prima facie finding. He also argued that Sebi had not granted the academy a hearing before passing the order.

 

Sebi, however, maintained that it had issued an administrative warning to the academy in March 2024 and that the interim order was based on evidence gathered during search and seizure operations conducted in August 2025.

 

In its ex-parte interim order, the regulator said that despite the earlier warning over selective display of profitable trades and misrepresentation, the entities continued to publish “misleading videos.” It exaggerated testimonials and social media content promising extraordinary returns, while many participants allegedly suffered substantial losses.

 

Sebi has directed disgorgement of ₹601 crore and imposed a market ban on founder Avadhut Sathe. It had also ordered the academy to cease and desist from using live market data in its programmes.

 

“We have full faith in the judiciary and are optimistic that in the next hearing, all our prayers will be accepted,” the academy said in a statement on Friday.