The Securities and Exchange Board of India (SEBI) has conducted major search and seizure operations targeting prominent financial influencers—often referred to as “finfluencers”—in Mumbai and nearby Karjat. While SEBI has not officially named the individuals, it has confirmed that these were well-known names in the influencer space. The regulator aims to curb unauthorized market advice and deceptive practices.
Regulator Sends a Strong Message to Market Educators
SEBI Whole-Time Member Kamlesh Chandra Varshney explained that such high-profile searches are intended to create a “deterrent effect”:
“Enforcement is not for revenue collection… but with big names, we show that there is law enforcement, there is a regulator watching you.”
He emphasised that while legitimate investor education is permissible, touting guaranteed returns, delivering stock tips inside classrooms, or using live trading data without formal registration violates regulations. SEBI’s stance is clear: unregistered financial advice is illegal, even under the guise of teaching.
Targeted Raids and Alleged Penny-Stock Manipulation
One of the key operations unfolded at the Karjat-based trading academy of Avadhut Sathe, a well-known finfluencer with nearly one million YouTube subscribers. SEBI conducted a two-day raid, seizing digital devices, trading records, and other material for forensic analysis. Sources suggest that Sathe’s alleged illegal advisory gains could be in the range of INR 400 to 500 crore.
Media investigations further allege that some finfluencers may be colluding with stock market operators to manipulate penny stocks—using classroom sessions as fronts to inflate small-cap prices. Such tactics raise serious concerns about market abuse and retail investor protection.