New Delhi | December 5, 2025: The Securities and Exchange Board of India (SEBI) has taken stringent action against well-known financial influencer Avadhut Sathe and his company, Avadhut Sathe Trading Academy Pvt. Ltd. (ASTAPL), issuing an order that bars them from the securities market and directing them to refund ₹546.16 crore deemed as illicit gains. SEBI has further instructed Sathe to immediately cease offering unregistered investment advisory or research analyst services.
Stock Tips Masquerading as Courses: SEBI’s Core Findings
In its exhaustive 125-page interim order-cum-show cause notice, SEBI stated that Sathe and ASTAPL systematically marketed training programmes and trading courses under the guise of “financial education” while allegedly providing stock-specific buy/sell recommendations for a fee. Key allegations outlined by SEBI include:
- Investors were enrolled under the banner of “education”, but were delivered implied investment advice
- Sathe allegedly provided specific buy/sell calls during training sessions
- Profitable trades were selectively showcased to create aggressive promotional narratives
- Participants were allegedly led to believe in the possibility of consistent, high returns
SEBI emphasised that neither Sathe nor ASTAPL held registration as a Registered Investment Adviser (RIA) or Research Analyst (RA)—a legal prerequisite for offering such services. The regulator noted that despite the absence of mandatory authorisations, the duo expanded their operations rapidly and collected significant fees between July 2017 and October 2025.
Over 3.37 Lakh Investors and ₹601 Crore Collected
According to SEBI’s findings, ASTAPL and Sathe collected:
- Fees from 3.37 lakh investors,
- Amounting to ₹601.37 crore over several years.
Of this, ₹546.16 crore has been classified as “illegal and unjust gains” and must be refunded as per SEBI’s directive.
Inflated Profits and Suppressed Losses: SEBI’s Investigative Observations
The regulator’s initial inquiry during FY 2023–24 revealed multiple red flags:
- Sathe and his academy allegedly exaggerated successful trades
- Loss-making trades were not disclosed
- The “success stories” were used as marketing tools to sell expensive trading programmes
SEBI’s extended investigation further examined:
- Social media content
- Live trading sessions
- Promotional videos
- Webinars
- Payment records
- Course material
The material, SEBI said, pointed to grave irregularities and a pattern of misrepresentation aimed at influencing retail traders.
SEBI’s Strong Message: No More Unregistered Advisories
In the order signed by Whole-Time Member Kamlesh Chandra Varshney, SEBI issued five critical directions:
- Sathe and ASTAPL must immediately stop providing unregistered investment advice
- They are barred from offering any form of research analyst services
- They must not use live market data to demonstrate trading strategies or buy/sell calls
- They are prohibited from advertising their own or participants’ profits or performance claims
- They must jointly return ₹546.16 crore to the investors
SEBI stated that the action was necessary to protect investors from misleading claims and to curb the growing menace of unregulated financial advisory services.
Market Experts: A Critical Lesson for Retail Investors
Market analysts believe the action underscores a broader regulatory shift focused on online influencers and trading educators who operate outside SEBI’s formal framework.
Experts highlight that: The rise of “finfluencers” has blurred the line between education and investment advisory, Many trainers indirectly recommend stocks while claiming to offer “knowledge sessions”, Retail investors often fall for high-return narratives and curated profit screenshots
The Sathe case, they say, is a textbook example of how unregulated advice can escalate into large-scale investor risk.
What Investors Should Learn
SEBI’s action underscores several key principles for investors:
- Always verify whether an advisor is SEBI-registered
- Avoid platforms that promise guaranteed or extraordinary returns
- Treat trading courses that include stock tips as potential unregistered advisory
- Be cautious of promotional content based on selective profit screenshots
- Understand that financial education should never include buy/sell recommendations
