Sebi impounds ₹546 cr, bars Avadhut Sathe academy for alleged violations

Sebi has barred Avadhut Sathe Trading Academy and impounded Rs 546 crore, alleging the outfit offered unregistered stock advice under the guise of education and misled participants

The Securities and Exchange Board of India (Sebi) on Thursday restrained Avadhut Sathe Trading Academy and its founder-trainer Avadhut Dinkar Sathe from dealing in securities and impounded Rs 546 crore of alleged “unlawful gains”.

 

What triggered Sebi’s action? 

The regulator said the outfit was effectively running unregistered investment advisory and research analyst services in the name of stock market education.

 

In an ex parte interim order-cum-show cause notice passed by whole-time member Kamlesh Varshney, Sebi also directed the academy and Sathe to cease and desist from offering any unregistered advisory or research services and from using live market data in their programmes.

 

What did Sebi find during investigation? 

Sebi alleged that stock tips, live trading calls and unrealistic return claims were sold as ‘education’ by the trading academy. The outfit’s entire Rs 601-crore fee pool generated since 2015 is now under scrutiny.

 

The investigation, covering July 1, 2017 to October 9, 2025, found that Sathe and his academy were allegedly giving stock-specific buy–sell calls, targets, stop-loss levels, option strategies and capital allocation guidance during paid courses and in closed WhatsApp groups, while projecting the activity as educational content.

 

What evidence did the regulator cite? 

The order referred to seized video recordings and chat logs showing Sathe using live price charts during sessions, displaying his own mark-to-market positions, and participants confirming trades based on his recommendations.

 

Was the academy registered to offer such services? 

Sebi said neither Sathe nor the academy was registered as an investment adviser or research analyst.

 

Did Sebi issue prior warnings? 

The regulator alleged that despite an administrative warning in March 2024 over selective showcasing of profitable trades and misrepresentation, the entities continued to publish “misleading videos”, exaggerated testimonials and social media content promising extraordinary returns, while many participants allegedly incurred substantial losses