Why Sebi banned Avadhut Sathe and froze ₹546 crore in a major finfluencer crackdown

In a major crackdown on illegal finfluencer activity, the Securities and Exchange Board of India (Sebi) has barred unregistered financial advisors Avadhut Sathe, his wife Gouri Avadhut Sathe, and their company Avadhut Sathe Trading Academy Pvt. Ltd. (ASTAPL) for allegedly providing investment advice without mandatory registration and using live market data to guide investors.

The regulator has ordered the impounding of ₹546.16 crore, identified as unlawful gains from unregistered advisory and research activities between January 2020 and October 2025. It has also proposed a total disgorgement of ₹601.38 crore, including fees collected for all courses offered during the period.

Sebi said immediate action was required to protect investors from misleading claims, unregistered advisory services, and the potential diversion of funds.

Who are Avadhut Sathe and Gouri Avadhut Sathe?

Avadhut Sathe is a former software engineer-turned-stock market trainer known for running ASTAPL, while his wife, Gouri Avadhut Sathe, is a director overseeing the academy’s operations.

The academy claims to have trained over 68,000 students in India and abroad and describes itself as a mission-driven institution focused on imparting disciplined trading and investing skills. It is an ISO-certified stock market training academy offering programmes across multiple Indian languages.

Sebi has now barred both Sathe and the company from the securities market for allegedly engaging in unauthorised investment advisory and research activities.

What is the case against them?

Sebi’s 125-page order alleges that ASTAPL was operating an unregistered investment advisory and research analyst business under the guise of stock market education.

The order notes that the academy went far beyond education by providing buy/sell calls, trading strategies, target prices, and stop-loss levels during live market sessions — activities that legally require RA or IA registration.

Several complainants told Sebi that trainers “ended initial sessions with a specific stock pick” and scheduled follow-up reviews, creating “an illusion of accuracy” to drive enrolments.

The order also records claims that ASTAPL and Sathe conducted live market sessions that “included direct trade recommendations,” and that Sathe shared his own live positions and MTM gains, influencing participants to copy his trades.

Complainants further stated that paid WhatsApp groups circulated “trade signals under the guise of chart study,” and that the academy promoted misleading profitability claims — including a video featuring a 12-year-old child suggesting trading becomes effortless after training.

Sebi found that “the advertised returns were not backed by facts” and that testimonials were “misleading,” both before and after the regulator’s administrative warning in 2024. Despite the warning, the noticees continued to publish material showing “unrealistic market returns” to attract enrolments.

What does the Sebi order say?

Sebi’s action follows “a detailed examination of ASTAPL/AS’s activities during FY24” along with multiple complaints received over time. According to the order, the academy was “publishing selective profitable trades of course participants and portraying consistent earnings,” even though the regulator’s analysis found that “all trainers and participants were in net losses.”

The regulator noted that it had issued an administrative warning on March 01, 2024 for “misrepresentation and selective disclosures,” but ASTAPL “continued misleading advertisements and videos.”

Sebi appointed an investigating authority on July 24, 2025, to probe activities between July 1, 2017 and October 9, 2025. A Special Court subsequently authorised “search and seizure operations” at ASTAPL’s premises and those of individuals linked to the entity.

Sebi says the noticees “continue to disseminate misleading information, induce investors by portraying unrealistic returns, and collect money for programmes” that, prima facie, involve unregistered advisory and analyst services.

What is the company’s response to Sebi’s order?

ASTA has categorically denied all allegations, saying it will take all necessary steps to protect its legal rights.

The company maintains that it is solely a stock market training institution, offering educational programmes designed to build decision-making skills, not investment advice.

ASTA argues that it is a “victim of regulatory vacuum”, stating that its activities do not fall under Sebi’s RA or IA regulations. It says it does not issue stock recommendations, investment calls, research reports, or execute trades on behalf of students.

According to the academy, all market examples are meant only for educational and conceptual clarity and should not be interpreted as advisory. ASTA says it has not earned any unlawful gains and supports clearer regulatory distinction for training-only entities.

The company also said it cannot be classified as a finfluencer, asserting that it does not monetise its YouTube, Instagram, Telegram, or other social media channels.