SEBI has passed an ex-parte interim order-cum-show cause notice against Avadhut Sathe Trading Academy Pvt. Ltd. (ASTAPL), its founder Avadhut Dinkar Sathe and director Gouri Avadhut Sathe, alleging that the academy carried out large-scale unregistered investment advisory and research analyst activities while marketing its services as stock market education.
The 125-page order, issued by Whole Time Member Kamlesh C. Varshney after a detailed FY24 investigation and an August 2025 search-and-seizure operation, states that despite a prior warning issued in March 2024, the academy continued publishing misleading promotional content showcasing only profitable trades. Several participants alleged that the courses promised extraordinary returns but instead led to heavy losses, and that live market sessions involved direct stock recommendations.
SEBI’s review of video evidence revealed that specific stock tips, targets, stop-loss levels and directional calls were routinely shared, with Sathe also displaying his own MTM positions. Participants were seen confirming that they executed trades based on his suggestions. Private WhatsApp groups for mentorship batches—charging up to ₹6.75 lakh—were allegedly used to circulate trade advice, option strategies and index forecasts, amounting to unregistered advisory activity.
Citing prima facie violations of the SEBI Act, Investment Advisers Regulations, Research Analysts Regulations and PFUTP norms, the regulator has barred ASTAPL, Avadhut Sathe and Gouri Sathe from accessing the securities market, except for liquidating existing holdings. They are prohibited from offering advisory or research services, conducting any stock-specific training, or issuing trade-related communication across platforms.
SEBI has ordered impounding of ₹5,46,16,65,367—identified as prima facie unlawful gains—and directed that the amount be placed in fixed deposits within 15 days, with a lien in favour of SEBI. Banks have been told to block debit transactions from the noticees’ accounts except transfers into these deposits. The parties must also furnish details of all bank accounts, assets, liabilities, fee collections and client lists within 15 days.
The regulator has further proposed joint and several disgorgement and monetary penalties totalling ₹601 crore plus interest. The noticees have 21 days to respond. The interim restrictions will remain in force until SEBI concludes its proceedings and issues a final order.
