SEBI Orders Avadhut Sathe and Academy to Refund ₹546 Crore in Unregistered Advisory Clampdown

The Securities and Exchange Board of India (SEBI) has cracked down on unregistered financial influencers, directing popular options trainer Avadhut Dinkar Sathe and his firm, Avadhut Sathe Trading Academy Pvt. Ltd (ASTAPL), to disgorge and refund ₹546.17 crore (around $58 million) collected from course attendees.

In its final ruling following an interim order passed in December 2025, the market regulator also ordered the deposit of ₹67.87 crore in interest with SEBI’s Investor Protection and Education Fund (IPEF) and slapped ₹11.5 crore in monetary penalties on the entity and its promoters.

Disguising Live Advisory as Education

According to SEBI’s investigation, the academy collected more than ₹601 crore across various programmes from over 3.37 lakh participants. While promoted as educational workshops in technical analysis and derivative trading, the regulator uncovered that the offerings crossed the line into regulated advisory activities without mandatory registration.

During live market hours, Sathe and the academy actively provided real-time entry and exit levels, stock-specific recommendations, price targets, and stop-loss triggers. Trade calls were routinely broadcast to participants via live streaming sessions and dedicated WhatsApp channels, inducing individuals to take directional bets in the cash and derivatives segments.

The regulator identified ₹546.17 crore in fees directly tied to eight specific training modules that engaged in these illicit advisory and research activities between January 2020 and October 2025.

Penalties and Market Bans Imposed

SEBI took stringent punitive measures alongside the disgorgement directive:

• Monetary Penalties: A penalty of ₹6 crore was slapped on ASTAPL, ₹4 crore on founder Avadhut Sathe, and ₹1.5 crore on director Gouri Avadhut Sathe, totaling ₹11.5 crore.
• Market Access Debarment: ASTAPL and Avadhut Sathe have been barred from accessing or dealing in the Indian securities market, directly or indirectly, for two years or until full compliance with the refund directions, whichever is later.
• Director Restrictions: Gouri Sathe has been restrained from accessing securities markets for a period of six months.

Refund Mechanism and Compliance

SEBI has granted ASTAPL and Sathe five months to execute the refund process to eligible participants. Within 30 days of the order, the noticees must publish detailed notices in two national daily newspapers (one English and one Hindi) and one local-language daily, clarifying the claims process.

All reimbursements must be routed strictly through verifiable electronic banking channels with a complete audit trail. Furthermore, the entire repayment execution must be reviewed and certified by an independent, peer-reviewed chartered accountant before being filed with SEBI.

Growing Repercussions for Indian Retail Traders

The enforcement underscores SEBI’s heightened offensive against social media finfluencers and training academies operating outside regulatory frameworks. Over the last three years, the surge in retail participation in India's equity derivatives segment has prompted regulators to tighten compliance, repeatedly warning that unchecked advice exposes small investors to substantial financial risks.

Tags: SEBI Avadhut Sathe Trading Academy Capital Markets Finfluencers Wealth Management