The latest case of unlawful gains by Avadhut Sathe Trading Academy is a good example that the Securities and Exchange Board of India’s (Sebi) ongoing fight to curb financial influencers, or finfluencers, will be a long-drawn battle.
In 2025, Sebi penalised big names like Asmita Patil, Mohammad Nasiruddin Ansari (Baap of Chart) and then Avadhut Sathe, clearly indicating that it is quite willing to take hard decisions. In fact, the market regulator has been bringing regulations and making a clear shift to tighten oversight over such individuals, things aren’t that simple.
It has even banned regulated entities from engaging with finfluencers. Yet, the tremendous rise in the number of retail investors looking to make a quick buck, has ensured that this industry continues to thrive.
What do legal experts say?
Legal experts said that the differentiating between what is financial education and what is investment advice is still a tough job. More importantly, the inadequacy of penalties, low entry barriers, ease of monetisation through courses and affiliations, and limited legal awareness around when registration is required contribute to continued non-compliance,” said Raghav Muthanna, partner at CMS INDUSLAW.
The Avadhut Sathe case, according to Sanjay Israni, partner at Desai & Diwanji, again highlights the fine but critical distinction between financial education and regulated investment advisory services.
“Key gaps include the absence of a clear categorisation of finfluencers, limited clarity on the boundary between “education” and “advice,” reliance on self-regulation by platforms, and enforcement challenges across digital channels,” Israni said.
Regulatory concerns are triggered when educational content turns into stock-specific recommendations, live trading guidance, or representations of assured profitability. If a content can reasonably influence a viewer’s decision to buy, sell, or hold a specific security, it likely falls within the regulated territory, Israni said.
Currently, finfluencers are not regulated on par with registered investment advisers or research analysts, and much of the control is done indirectly through amendments to existing regulations and enforcement under broader provisions such as the Sebi Act and Prohibition of Fraudulent and Unfair Trade Practices Regulations.
“As several finfluencers do not specifically advise on stocks, portfolios or make specific claims on returns on investment but merely educate their followers or subscribers through digital media on the different financial offerings available, it will be hard to apply the same yardstick to all finfluencers,” Muthanna added.
According to him, several finfluencers either characterise their content as “education” or general opinion, relying on exclusions for publicly available information to avoid registration as an investment advisor or research analyst, despite exerting material influence on investor behaviour.
Last week, the Securities Appellate Tribunal gave partial relief to Avadhut Sathe and his trading academy, directing the latter to deposit ₹100 crore for making unlawful gains from unregistered market activities during 2020-2025. Last year, Sebi had alleged that the academy made ₹546 crore from unregistered activities, “recklessly misleading” investors to deal with securities based on its advice.
Finfluencers penalised by Sebi
- March 2025 – Sebi banned Asmita Patel and her associates and impounded ₹53.67 crore for unauthorized investment advisory services and promising guaranteed returnsto investors. On January 6, the Securities Appellate Tribunal asked Sebi to disclose identities of complainants in the case.
- December 2025 – Sebi issued prohibitory order against Mohammad Nasiruddin Ansari (popularly known as Baap of Chart), Rahul Rao Padamati, and Golden Syndicate Ventures and imposed a total penalty of over ₹18 crore. He was banned from the securities market for up to one year.
- December 2024 – Ravindra Balu Bharti and his education institute were penalised over ₹12 crore and was banned till April 2025.
- May 2023 – PR Sundar, his consulting firm Mansun Consultancy were penalised more than ₹6 crore and was banned for one year.