Market regulator Securities and Exchange Board of India (SEBI) has delivered one of its toughest blows yet to India’s financial influencer (finfluencer) circuit, impounding ₹546.17 crore in unlawful gains from finfluencer Avadhut Sathe and Avadhut Sathe Trading Academy Pvt Ltd (ASTAPL) and barring the finfluencer, his wife Gouri Sathe and their Academy from the securities market, after uncovering evidence that they operated a vast network of unregistered investment advisory services under the guise of stock-market 'training'. The regulator’s explosive interim order details a multi-year scheme involving live trade tips, WhatsApp-based recommendations and misleading promotional content that allegedly induced thousands of retail investors into costly programmes promising unrealistic market success.
In the
hard-hitting interim order cum show cause notice (SCN), SEBI's whole-time member (WTM) Kamlesh Chandra Varshney says, "Investigation has revealed that, prima facie, the funds were collected in the accounts of ASTAPL and Mr Sathe. While Ms Sathe was involved in day to day affairs of the company, she was not found to be providing any investment advisory or research analyst services to the course participants. It was primarily Mr Sathe who played a major role in devising a scheme wherein course participants were lured to trade in specific stocks. Recommendations of buy and sell of specific securities were provided by Mr Sathe for a consideration in the pretext of imparting education. Considering the material on record, I note that in so far as impounding of the proceeds to the tune of ₹546.17 crore is concerned, ASTAPL and Mr Sathe are jointly and severally liable for the same."
According to the 125-page order, Mr Sathe and Avadhut Sathe Trading Academy Pvt Ltd (ASTAPL) built a sprawling empire marketed as a stock-market education platform, but SEBI found that the operations extended far beyond training. The academy ran paid webinars, multi-tiered programmes and an expensive mentorship scheme costing up to ₹6.75 lakh, where participants allegedly received direct, actionable stock and derivatives recommendations, often delivered during live market hours.
SEBI noted that despite issuing a warning in March 2024 for selective disclosures and misleading claims, Mr Sathe continued to publish promotional material, showcase cherry-picked profits and feature testimonials suggesting extraordinary returns, including content starring a 12-year-old child claiming trading became easy after the training.
Complaints from students triggered SEBI’s investigation, with many alleging they suffered significant losses despite being encouraged to follow Mr Sathe’s strategies and market predictions. SEBI secured court approval and conducted search and seizure operations in August 2025, collecting devices, documents and recordings that revealed a pattern of unregistered investment advice.
WhatsApp group chats linked to the Academy’s mentorship programme showed specific calls on equities and derivatives. Messages such as “Power Grid likely to make all-time high… PFC great entry near 160.. SL clear now..” and “Nifty is likely to break the support and head towards 22000 and below… We may see a gap down on Monday” were cited as examples of Sathe’s alleged advisory activity.
SEBI identified repeated patterns of specific buy and sell recommendations, accompanied by targets, stop-loss levels and predictions of imminent price movements.
Recordings from live sessions showed Mr Sathe providing real-time cues on entry points, capital allocation and trade direction, with some participants openly stating they had taken positions immediately after his cues. In one instance, Mr Sathe suggested deploying up to ₹2 crore from a fixed deposit (FD) into a specific stock, arguing that the risk-reward ratio was favourable. SEBI described this as an unambiguous inducement, noting that Mr Sathe also displayed his own mark-to-market positions during sessions to reinforce credibility and influence investors.
Complainants also accused the Academy of promoting only successful trades and carefully curating 'success stories' to attract new students. SEBI’s analysis found that the trainers and model students showcased in promotional material were, in fact, in overall losses. Some participants reported being encouraged to take loans to pay for the premium mentorship programme, reinforcing SEBI’s view that the academy’s operations prioritised revenue generation over genuine education.
After reviewing extensive transcripts, WhatsApp communications, promotional videos, and enrollment records, SEBI concluded that Mr Sathe and ASTAPL were running an unregistered investment advisory and research analysis business, violating the SEBI Act, the Investment Adviser Regulations, the Research Analyst Regulations, and the PFUTP Regulations. The regulator says the 'training' narrative was merely a façade for core advisory activity presented through live sessions and private groups, all while collecting substantial fees from retail investors seeking guidance.
In its interim order, SEBI impounded ₹546.17 crore as alleged unlawful gains derived from these activities and directed Mr Sathe, his wife and the Academy to deposit the amount in an escrow account. The regulator has restrained them from buying, selling or dealing in securities and prohibited them from offering any investment advisory, research-related or similar services until further directions. The order also serves as a show-cause notice (SCN) asking why final directions, including disgorgement and permanent restraint, should not be imposed.
The action marks one of SEBI’s most forceful crackdowns on the finfluencer ecosystem, signalling a firm stance against individuals and entities offering disguised advisory services through high-priced courses, mentorships and online groups without mandatory registration. As the probe continues, the regulator’s findings paint a picture of an extensive operation that blurred the line between education and unlawful advisory, leaving scores of retail participants exposed to heavy losses and misleading claims.
In August 2025, SEBI conducted a two-day search and seizure operation at the Karjat Trading Academy, run by the finfluencer. Finfluencer Sathe, popularly known as a 'market guru' on social media, runs the Karjat-based Avdhut Sathe Trading Academy (ASTA) and has a strong retail following, including nearly 940,000 subscribers on his YouTube channel. His popularity and influence over retail investors have reportedly kept him on SEBI’s radar for several months.
Earlier, speaking at a FICCI-CAPAM event, Mr Varshney confirmed that the regulator had carried out 'a big search operation on a big name in this industry', without naming Mr Sathe directly. Mr Varshney emphasised that the action aimed to send a warning to market educators and influencers who mislead young investors under the guise of financial education.
“One cannot misguide the youth in the name of education by giving calls in classrooms, promising guaranteed returns, or using live trading data. Such activities require SEBI registration,” the SEBI WTM had said.
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