NEW DELHI: In a major crackdown, the Securities and Exchange Board of India (SEBI) has issued an ex-parte interim order against Avadhut Sathe Trading Academy Private Limited (ASTAPL) and its founders, alleging a massive fraud where the entity operated as an unregistered investment adviser and research analyst under the guise of stock market education, collecting over Rs 600 crore from unsuspecting investors. The order, passed by Whole Time Member Kamlesh C Varshney, restrains the company and its promoter, Avadhut Dinkar Sathe, from the securities market and directs the impounding of Rs 546.16 crore, deemed to be unlawful gains.
SEBI's investigation, initiated based on complaints and a previous warning issued in March 2024, found that ASTAPL and its main trainer, Avadhut Sathe (AS), were not merely educating students. The regulator alleges they were providing specific investment advice, stock recommendations, and trading calls—activities that require mandatory registration with SEBI.
The Sebi order provides key evidence that to Avadhut Sathe’s unlawful activities. Video recordings show Sathe was providing specific entry/exit points, stop-loss levels, and price targets for stocks like Kotak Mahindra Bank, Reliance Industries, and Natural Gas futures during paid sessions.
He operated multiple paid WhatsApp groups (like Mentor Batch and VOW groups) where he regularly broadcast buy/sell recommendations, targets, and his own trading positions to members.
According to the Sebi order, ASTAPL published video testimonials of students claiming extraordinary profits. SEBI verified the actual trading records of these individuals and found they had incurred losses, not profits. Sebi analysis shows numerous course participants placed trades in the exact securities recommended by AS on the same day, indicating they were following his advice.
According to the regulator, in one session, AS advised participants to divert funds from Fixed Deposits to specific stocks like Kotak Bank, promising higher returns.
The investigation revealed a vast operation with total collection of Rs 601.38 crore from over 4.1 lakh participants across various courses between July 2015 and October 2025.
The Mentorship programme charged Rs 6.75 lakh per participant. Analysis of the last two batches showed 65% of identifiable students incurred net losses in the six months after completing the course.
While marketing himself as an expert, AS and his company incurred trading losses of over Rs 6.19 crore in the last two financial years. Despite an administrative warning from SEBI in March 2024 to stop misrepresentation, ASTAPL continued its misleading advertisements.
Regulatory violations and immediate actions
According to Sebi investigation, Avadhut Sathe and Gouri Avadhut Sathe were in violation of SEBI Act for acting as unregistered Investment Adviser and Research Analyst and Prohibition of Fraudulent and Unfair Trade Practices) Regulations for misleading investors, fraudulent inducement, and mis-selling.
The interim order
As per the Sebi order, noticees were asked to immediately stop all unregistered advisory/analyst activities; and restrained from buying, selling, or dealing in securities. Sebi also ordered impounding of Rs 546.16 crore (attributable to eight key courses from 2020-2025) to be impounded jointly from ASTAPL and Avadhut Sathe.
Banks have been directed to allow no debits from their accounts, and demat accounts are frozen, except to facilitate the impounding.
All related advertisements, websites, and videos must be taken down.
Show cause notice and future actions
This interim order also acts as a show cause notice. The noticees have 21 days to respond. SEBI has called upon them to explain why further actions should not be taken, including disgorgement (refund) of the entire Rs 601.38 crore collected, permanent restraint from the securities market, and imposition of monetary penalties.
SEBI clarified that the order is not against genuine financial education but targets the "garb of educational activity" used to provide stock-specific advice. The regulator emphasized the need for urgent action to prevent further investor harm and protect alleged unlawful gains from being siphoned off.
