SEBI Orders Rs 14 Crore Refund From Trading Trainer Avadhut Sathe

The Securities and Exchange Board of India (SEBI) has ordered market trainer Avadhut Sathe and his company Avadhut Sathe Trading Academy Pvt Ltd (ASTAPL) to refund Rs 13.99 crore after concluding that their stock-market training operations were effectively functioning as an unregistered investment advisory business rather than a genuine educational platform. According to the regulator, the amount represents the net unlawful gains collected from thousands of students over several years through various training programmes and subscription models.

SEBI’s investigation found that Sathe used a wide network of online trading groups, live market sessions and classroom courses to provide participants with real-time trading tips, strategies and recommendations, despite not holding mandatory registration as an Investment Adviser (IA). The regulator noted that the tiered course structure  from beginner to advanced levels  was intentionally designed to move students into paid trading communities dependent on ongoing market guidance, making the activities indistinguishable from commercial investment advice.

The order also questioned Sathe’s promotional claims of using algorithm-driven and rule-based trading systems to generate market returns. SEBI reported that these algorithms did not exist in the manner advertised. Additionally, the regulator flagged the use of select testimonials, success stories and trading screenshots to attract new participants  marketing practices that are prohibited for advisory services operating without registration.Financial records examined by SEBI revealed that course and subscription fees were routed through ASTAPL and linked entities, forming what the regulator described as an “ecosystem of commercialised market advice.” This structure allowed a steady flow of revenue from the same pool of retail investors under the guise of educational offerings, even though the services delivered fell within the legal definition of regulated investment advisory activity.

Describing the conduct as posing a “systemic risk to retail investors,” SEBI has imposed immediate restrictions on Sathe and all affiliated entities, barring them from taking on new clients, offering market-related courses, or issuing trading instructions or recommendations until the proceedings are completed, in addition to enforcing the refund of Rs 13.99 crore.