India’s market regulator, Sebi, has ordered Mumbai-based financial influencer Avadhut Sathe and his Avadhut Sathe Trading Academy to stop giving investment advice or research services without proper registration.
Sebi has also barred them from trading in the stock market and instructed them to return Rs 546 crore, which the regulator says was earned through these unregistered advisory activities. The order also requires Sathe to immediately stop all types of investment advice or research services. In addition, their bank and demat accounts will be frozen, with limits placed on any kind of withdrawals or transactions.
Who is Avadhut Sathe?
Avadhut Sathe is a self-proclaimed “finfluencer“, who is also popular for his dancing videos on social media. He came under the scrutiny of Sebi during a search operation that was carried out at his Avadhut Sathe Trading Academy. SEBI found that ASTAPL, along with Avadhut Dinkar Sathe and Gouri Avadhut Sathe, were giving all this paid investment advice and research guidance without having the required registration.
According to the order, they promoted only their successful trades and claimed that people who joined their courses could earn regular profits from trading. This was said even though SEBI’s own studies show that most small traders, about nine out of ten, usually lose money, a CNBC report said. SEBI had already warned them in March 2024, but the same practices reportedly continued.
The investigation also showed that they gave direct stock tips during paid classes, including buy and sell levels, targets, and stop-loss points, using real-time market data. Sathe even showed his personal trades and profits during live sessions to influence learners.
SEBI further noted that trade tips were shared in paid WhatsApp groups, presented as “chart analysis.” They were also accused of encouraging people to take loans to afford the course fees.
What does the order say?
SEBI’s order said that even after it issued a warning in March 2024 about misleading claims and selective information, the academy continued to post promotional content showing only successful trades from its courses.
Several complaints stated that the programs promised high profits but caused significant losses. The academy also held live trading sessions where specific trade tips were given. SEBI’s review of these videos showed that course participants were regularly advised on which stocks to buy or sell, target prices, stop-loss levels, and market directions.
Avadhut Sathe also shared his own trading positions during these sessions, and participants confirmed that they made trades based on his recommendations.
SEBI has found that Avadhut Sathe Trading Academy and its promoters collected over Rs 601 crore from more than 3.37 lakh investors through their training courses. The regulator has ordered that Rs 546 crore, considered to be the earnings from these unregistered activities, be frozen.
The frozen amount will be held jointly from both the academy and Avadhut Dinkar Sathe. The noticees have been given 21 days to respond to the Show Cause Notice, starting from the day they receive the order.