Daijiworld Media Network – Mumbai
Mumbai, Dec 5: In what is being seen as the strongest enforcement action against a financial influencer in India, the Securities and Exchange Board of India (Sebi) has barred Avadhut Sathe, the founder of Avadhut Sathe Trading Academy (ASTA), from participating in the securities market. Additionally, the market regulator has ordered the impounding of a massive Rs 546 crore, alleging wrongful gains made through unregistered investment advisory activities that misled thousands of retail investors.
The Sebi order issued on December 4 marks a critical milestone as the regulator intensifies its efforts to restore transparency and discipline in the fast-growing finfluencer ecosystem. Though Sathe positioned his academy as a training platform, Sebi’s investigation found that ASTA was actively giving participants stock-specific calls, including buy and sell decisions during live market hours, without having a regulatory licence.
During the probe, the regulator examined videos, WhatsApp groups, social media posts and participant testimonies. It highlighted instances where Sathe directed trainees to take Bank Nifty futures trades with specific entry prices, targets and stop-loss instructions. Sebi noted that such practices clearly crossed the line into investment advisory.
According to the order, the academy also ran private “counselling batches”, wherein real-time trading guidance was offered to hundreds of paying members. Sebi observed that many of these sessions were designed to produce quick trades, creating an impression of guaranteed profits. Promotional material using selective screenshots of successful trades further influenced unsuspecting retail traders. Even after receiving warnings earlier in the year, Sathe continued operating such private advisory setups, allegedly making them more discreet to avoid regulatory scrutiny.
Sebi stated that the high fees—ranging up to Rs 6.75 lakh per participant—were not for education alone but for actionable market tips, making the entire business resemble an unregistered advisory service. The regulator determined that the academy unfairly benefitted by inducing investors into trades under the guise of skill enhancement.
As part of the restrictions, Sathe, ASTA and director Gouri Sathe have been prohibited from accessing the securities market until further orders. Banks have been directed to freeze their financial accounts, and the impounded amount of Rs 546 crore must be placed in fixed deposits under Sebi’s lien. The academy has also been ordered to furnish full financial details, including assets, bank statements, GST records and a complete list of clients who enrolled for its programmes.
This landmark action signals Sebi’s tough stance against unregulated financial influencers who use social platforms to offer trading promises. The regulator expressed concern that thousands of amateur traders followed Sathe’s methods believing them to be foolproof, exposing themselves to potential financial ruin.
Sebi clarified that any educator or influencer giving stock-specific strategies, live market calls, or private trading group access will be treated as performing advisory functions illegally, unless registered under the regulator’s framework. With this ruling, the watchdog has sent a sharp warning that misleading investment guidance will not be tolerated, especially when investor interests are at stake.