In its strongest action yet against a financial influencer, Sebi has barred Avadhut Sathe, founder of the Avadhut Sathe
Trading Academy (ASTA), from the securities market and ordered the impounding of Rs 546 crore.
The regulator said this money was collected through unregistered investment advisory activity that misled thousands of
The order, issued on December 4, marks a turning point in Sebi’s push to clean up the finfluencer ecosystem, where many
online trainers claim to offer education but end up giving specific stock tips, guidance and live trading calls without
HOW THE CASE CAME TO SEBI’S ATTENTION
The Sebi investigation began after complaints that Sathe’s academy was not just offering trading courses but also giving
out buy and sell calls during live market sessions. Once the probe started, Sebi analysed videos, WhatsApp messages,
social media content, payment structures and testimonies of participants.
In one example highlighted by Sebi, Sathe was shown conducting a live trading session where he instructed participants
to enter a Bank Nifty futures trade at a particular price, along with the stop-loss and target. This, Sebi noted, went
far beyond education and became a direct investment recommendation.
The order said, “The activities of the noticees were not limited to general training. They were providing specific
advice with entry and exit points. Such conduct is characteristic of an investment adviser, not an educator.”
Sebi added that the academy’s “counselling batches” were a structured system through which Sathe and his team guided
participants on real trades, often using private WhatsApp groups to give instant instructions. Some of these groups had
hundreds of members paying high fees.
WHY SEBI SAID THIS WAS NOT EDUCATION
Sebi found that ASTA frequently advertised high-probability strategies that could “change a trader’s life”, and used
screenshots of profitable trades to promote the courses. The regulator said this created a “false sense of guaranteed
returns”, which is against investor-protection rules.
The order criticised the selective showcasing of profits while hiding losses. Sebi wrote, “The noticees repeatedly
displayed only favourable outcomes to prospective clients. This conduct is misleading and intended to induce them to
subscribe to the programmes.”
Sebi also noted that Sathe continued these practices even after receiving a formal warning earlier in 2024, and instead
made the activities more private to avoid scrutiny.
The training programmes offered by ASTA ranged from basic to advanced levels, with some costing as much as Rs 6.75 lakh
per person. Sebi said the fees were not just for theoretical lessons but for access to “real-time actionable advice”,
which made the entire model functionally indistinguishable from paid investment advisory.
The order stated that the academy was “deriving wrongful gains by offering advisory services under the guise of
education”, which led Sebi to calculate the impounded amount of Rs 546 crore.
WHAT SEBI HAS ORDERED NOW
Sebi has barred Avadhut Sathe, ASTA and director Gouri Sathe from the securities market until further orders. They
cannot buy or sell securities, cannot run any advisory activity and cannot conduct live trading sessions that involve
Banks have been instructed to freeze their accounts until Rs 546 crore is placed in fixed deposits under lien to Sebi.
Sebi added, “The noticees shall not solicit or undertake any activity related to investment advisory, research or
portfolio management in any form, including training modules that involve real-time calls.”
The noticees must also share complete financial records, asset details, bank statements, GST filings and a list of every
customer who paid for their programmes.
This is the largest sum ever impounded from a finfluencer in India. It signals a tough line from Sebi, which fears that
unregulated advice from social media personalities can cause serious financial harm to retail traders.
Sebi said the actions were necessary because Sathe’s influence was “widespread”, with thousands of participants paying
large sums based on promises of improved trading performance. The regulator also noted that many clients believed
Sathe’s methods were “fail-proof”, which showed how deeply they trusted his market calls.
The order also reflects Sebi’s growing concern that finfluencers are operating outside the regulatory perimeter while
performing the same role as registered advisers.
Sebi wrote, “The conduct of the noticees poses a serious risk to investors and the securities market. Immediate action
was required to prevent further harm.”
The case sets a clear benchmark for what Sebi considers illegal. If a trainer or influencer provides stock-specific
instructions, shows live trades, or uses private groups to guide market positions, they may be treated as an