Who is Avadhut Sathe, finfluencer banned by Sebi for unregistered advisory?

Sebi has barred finfluencer Avadhut Sathe and his trading academy from markets, alleging they ran an unregistered advisory scheme that misled over three lakh investors and earned unlawful gains

Finfluencer and market trainer Avadhut Sathe has been banned from accessing the securities market after the Securities and Exchange Board of India (Sebi) issued an interim order alleging that he and his academy operated an unregistered investment advisory business. Sathe and Avadhut Sathe Trading Academy Pvt Ltd (ASTAPL) have also been directed to disgorge ₹546.16 crore, which the regulator termed unlawful gains.

 

The order follows a search and seizure operation at his Karjat residence and academy in August, carried out after Sathe came under the regulator’s lens for providing stock recommendations under the pretext of investor education. The operation, led by a deputy general manager, was executed after detailed planning, court approvals and reconnaissance.

 

How Avadhut Sathe rose to prominence

Sathe’s journey has often been described as a classic rags-to-riches story. According to a report in The New Indian Express, Sathe grew up in a Dadar chawl in central Mumbai before securing an engineering degree and moving abroad for IT jobs in Singapore, Australia and the US.

 

According to his website, Sathe has been trading and investing since 1991. He returned to India and shifted his focus to trading and education in 2007.

 

In 2008, he launched the Avadhut Sathe Training Academy (ASTA), which grew from a single seminar to a nationwide network of 17 centres. His training programmes blended technical analysis, psychology, yoga and motivational sessions, attracting students from across India and abroad. His online presence, including a YouTube channel with nearly a million subscribers, played a key role in expanding his influence. According to his website, the cost of a three-month residential training ranges between ₹21,000 to ₹1.7 lakh.

 

Sathe became a viral figure in 2023 after a video of him dancing during a trading session gained traction on social media. His academy publicised numerous testimonies of students achieving rapid trading success, further amplifying his reach.

Why Sebi acted against Avadhut Sathe

According to the interim order, Sebi found that Sathe and ASTAPL collected ₹601.37 crore from more than 3.37 lakh investors, allegedly offering stock-specific recommendations and trade levels without being registered as investment advisers or research analysts. The regulator said that course participants were lured into trading certain stocks and that only profitable trades were showcased in promotional materials.

 

Sebi noted that the activities went beyond education, observing that Sathe provided actionable trade advice and induced investors to deal in securities. The regulator highlighted the scale of operations and said urgent preventive action was needed to stop further harm to participants.

 

Sebi stated, “It is clear that none of the noticees are registered with Sebi as investment advisor or research analyst. However, despite being not registered, noticees have been providing investment advisory and research analyst services under the guise of their stock market training programmes to a large number of investors.”

Crackdown comes amid rising criticism

Sathe had already been facing criticism from market participants and other finfluencers, who accused him of misleading retail investors and promoting questionable trading strategies. Reports suggested that he shared stock tips in private groups and advised on penny stocks, raising concerns about his influence over inexperienced traders.

 

According to The New Indian Express report, his training business also expanded rapidly in recent years, with fee income increasing from an estimated ₹17 crore in 2021 to ₹86 crore in 2023. Projections for 2025 suggested revenues could have reached ₹200 crore, the report said. 

Sathe's firm responds to Sebi charges

 

In response to the Sebi charges, ASTA released a statement denying the allegations. "ASTA operates solely as a training institution. Our programmes are educational and aimed at skill building and training in decision making in financial markets among investors and traders," the statement read.

 

"We are a victim of regulatory vacuum and do not fall under the category of Research Analyst or Investment Adviser. We do not issue stock analysis or recommendations, investment advice or research or execute transactions on behalf of our students. All interactions, references, and examples used in our sessions are presented purely for educational and conceptual clarity. They are contextual in nature and are not to be construed as advisory or recommendation of any kind," it added.

 

ASTA claimed that it never "accrued or garnished any unlawful gains" from advisory services or research analysts services. "We can also not be classified as a FinInfluencer as we do not monetise any of our Youtube or social media channels such as Instagram/Telegram etc," it said.

 

"We will take all necessary steps to protect our legal rights. The order will be challenged in the appropriate forum and we have full faith in the legal and judicial framework," it added.

What next for Avadhut Sathe

As the order is interim, Sathe and ASTAPL have the opportunity to respond to Sebi and present their case. The restrictions and disgorgement directions, however, remain in force until a final order is issued. The regulator has also barred Sathe from using live market data, promoting trading performance and offering any advisory or research-related services.