Sebi bans fin influencer Avadhut Sathe, firm from securities market; orders Rs 546 cr disgorgement

New Delhi, Dec 4 (PTI) Sebi on Thursday barred financial influencer Avadhut Sathe and his firm Avadhut Sathe Trading Academy Pvt Ltd from the securities market and directed them to disgorge Rs 546 crore of 'unlawful gain' earned from the alleged unregistered investment advisory and research analyst business.

Avadhut Sathe Trading Academy Pvt Ltd (ASTAPL) is operated by financial influencer Avadhut Sathe (AS).

In a 125-page interim order cum show cause notice, Sebi said, "Investigation has revealed that, prima facie, the funds were collected in the accounts of ASTAPL and AS." The regulator noted that Gouri Avadhut Sathe was involved in the day-to-day affairs of the company; she was not found to be providing any investment advisory/research analyst services to the course participants.

According to the order, it was primarily AS who played a major role in devising a scheme, wherein course participants were lured to trade in specific stocks. Recommendations for buy/sell of specific securities were provided by AS for a consideration in the pretext of imparting education.

"...so far as impounding of the proceeds to the tune of Rs 5,46,16,65,367/- is concerned, ASTAPL and AS are jointly and severally liable for the same," Sebi's whole-time member Kamlesh Chandra Varshney said in the order.

Sebi said, "It is clear that none of noticees (ASTAPL and AS) are registered with Sebi as investment advisor or research analyst. However, despite being not registered, noticees have been providing investment advisory and research analyst services under the guise of their stock market training programs to a large number of investors." They have observed to have collected Rs 601.37 crore from more than 3.37 lakh investors and have been recklessly misleading, soliciting and inducing the investors to deal in the securities market on the basis of investment advice and stock analysis without having the requisite registration certificate as mandated under securities laws.

Accordingly, Sebi directed the noticees (ASTAPL and Avadhut Sathe) to cease and desist from offering unregistered investment advisory and research analyst services, from acting as or holding themselves out to be investment advisors/ research analysts.

The noticees should not use live data for any purpose and should not advertise performance or profits of themselves or their course participants/investors, the regulator said.

Sebi said, "It is necessary to take urgent preventive action in this matter to prevent ASTAPL/AS from misleading the public or influencing investors to deal in securities, collecting fees from the public, and engaging in unregistered investment advisory and research analyst activities." Therefore, an interim order cum show cause notice is required to be issued against the noticees so that they cease and desist from carrying out such unregistered activities.

Sebi directed Sathe and his academy to jointly disgorge Rs 546.16 crore being the total unlawful gain earned prima facie from the alleged unregistered investment advisory and research analyst business.

The Securities and Exchange Board of India (Sebi) conducted an examination for FY 2023-24, regarding activities of ASTAPL and its founder-trainer Avadhut Sathe and found that Sathe and his academy selectively showcased profitable trades of participants and marketed training programmes with claims that attendees consistently generated high returns from stock trading.

Thereafter, the regulator conducted a detailed investigation in the matter for the period July 1, 2017 to October 9, 2025. TI HG HVA