SEBI Bans Avadhut Sathe, Orders ₹546 Cr Refund on Unregistered Advisory

SEBI Bars Avadhut Sathe, Demands ₹546 Crore Refund Over Unregistered Advisory Allegations

The market regulator has taken a major step against one of India’s most prominent financial educators. SEBI has barred Avadhut Sathe — along with his firm Avadhut Sathe Trading Academy Pvt Ltd (ASTAPL) — from the securities market, alleging that they operated an unregistered investment advisory and research-analysis business under the guise of a “trading academy.” 

As part of the interim order, SEBI has ordered disgorgement of roughly ₹546.16 crore, describing it as “unlawful gains” collected from thousands of investors who responded to promotional claims about stock-market performance. 

What Triggered the Ban

• According to SEBI’s findings, Sathe and ASTAPL provided specific trading recommendations — buy/sell calls, target & stop-loss levels, and portfolio guidance — despite not being registered as an investment adviser or research analyst. 

• The “academy” offered live-market tips via private groups and courses, giving the impression of education but functioning effectively as advisory services. 

• SEBI’s probe found that over the span from July 2017 to October 2025, ASTAPL collected substantial fees — reportedly from more than 3.37 lakh investors. 

Regulatory Orders: What Sathe & ASTAPL Must Do

As per the order:

• Sathe, his academy, and associated entities are prohibited from buying, selling or dealing in securities. 

• They must cease all advisory, research-related, or live-trading guidance services, including courses masquerading as education. 

• All solicitations, advertisements, or promotions showcasing past performance or “guaranteed returns” must stop. 

• The seized amount — ₹546.16 crore — is to be placed under regulatory lien or escrow until further directions. 

Why This Matters — For Investors & the Finfluencer Ecosystem

This is among the sternest actions taken by SEBI against a “finfluencer” to date — signalling a crackdown on unregulated advisory activities. 

For retail investors, it underscores the risk of trusting stock-market “gurus” or academies offering quick-win promises without proper licensing or transparency. For other financial influencers, it serves as a clear warning: providing actionable advice or research without registration carries serious legal repercussions.

What Investors Should Do Now

• Always verify the registration status of any advisor or firm giving stock tips — only registered advisers are allowed to give trading recommendations.

• Be skeptical of claims showing only successful trades or unrealistically high returns — these often omit the losses.

• Approach “education + advisory + live trading calls” offers cautiously, and prefer regulated, transparent channels for investment decisions.

Shunyatax Global Insight

SEBI’s decisive action against Avadhut Sathe and his academy represents a turning point in regulatory oversight of the online “finfluencer” industry. Market regulators are making it clear: regulation, transparency, and licensing are non-negotiable when it comes to investment advice.

Shunyatax Global Services continues to monitor developments related to investor protection, market regulation, and financial-education practices. We urge investors to stay vigilant and rely on credible, compliant institutions when making investment decisions.