The Securities Appellate Tribunal (SAT) has issued an interim order that allows Avadhut Sathe Trading Academy to resume

its operations. The order also unfreezes the academy's bank account, enabling it to cover operational expenses.

The order, presided over by Justice PS Dinesh Kumar, maintains the status quo. The tribunal expressed surprise at the

Securities and Exchange Board of India's (SEBI) directive that Avadhut Sathe Trading Academy and Avadhut Sathe deposit

₹546 crore after their accounts were frozen.

This decision came during a hearing of an appeal filed by ASTAPL, Avadhut Sathe, and his wife, Gouri Sathe, against

SEBI's order from December 4. The SEBI order had banned Avadhut Sathe and the trading academy from trading, collecting

fees from students, and mandated the deposit of ₹546 crore.

SEBI had accused the academy of providing investment advice and research analyst services under the guise of running a

trading academy. The next hearing on this matter is scheduled for January 9.

Senior counsel Janak Dwarkadas, along with senior counsel Gaurav Joshi and CK Legal, represented Sathe. SEBI was

represented by senior advocate Chetan Kapadia.

Dwarkadas argued that SEBI's ex-parte order directed them to deposit ₹546 crore within 15 days of freezing their bank

and demat accounts. He also highlighted that SEBI's investigation relied on complaints from only 12 students out of the

350,000 students who were training at the academy.

Dwarkadas stated that SEBI's investigation centered around ASTA's use of real-time data during instruction. He

questioned how one could teach someone to swim without getting in the water.

He further noted that while the SEBI Act allows 45 days to file an appeal, SEBI gave ASTA only 21 days to respond and 15

days to deposit the funds, while immediately freezing their bank accounts.

Seeking a stay on SEBI's order, Dwarkadas informed the tribunal that ASTA's monthly expenses amounted to ₹5.25 crore,

and the frozen accounts prevented them from meeting these obligations.

SEBI countered that certain expenses, such as ₹2 crore for advertisements and ₹1 crore for seminars, might not be deemed

necessary. The regulatory body accused the academy of operating as unregistered investment advisors (IA) and research

analysts (RA) while presenting itself as a stock market education platform.

After considering arguments from both sides, SAT issued an interim order allowing the academy to access its accounts to

cover monthly operational costs.

SAT's order stated that the academy could withdraw ₹2.25 crore for the current month, considering the intervening

vacations. Bank accounts will be unfrozen to that extent.