An interim order from the Securities and Exchange Board of India (SEBI) has barred Avadhut Sathe and his organisation Avadhut Sathe Trading Academy (ASTAPL/ASTA) from the securities market and directed them to refund ₹601.37 crore – deemed “illegal gains” – collected over almost eight years.
According to SEBI’s 125-page order, the regulator examined Sathe and his academy’s activities between July 2017 and October 2025.The investigation revealed that ASTA, rather than functioning purely as an educational institute, was giving stock-specific recommendations: buy/sell calls, target prices, stop-loss levels, option strategies, and even capital allocation guidance.
From Training Classes to Advisory: Where Things Went Wrong
Complaints and growing evidence prompted SEBI’s investigation, revealing that what was promoted as “education” actually operated as unregistered investment advisory. In paid training sessions – often held in closed WhatsApp groups – Sathe and his team allegedly delivered real-time trading instructions, including recommendations and live trading calls.
Investigators seized videos, chat logs, and trading records from his Karjat academy after a two-day search operation (20-21 August 2025).SEBI observed that the courses highlighted only profitable trades, whereas loss-making or adverse trades were never disclosed – a selective portrayal that misled numerous investors.
The regulator declared that the activities plainly crossed from “general education” into “investment advising/research analysis,” which legally demands SEBI registration – something neither Sathe nor ASTA possessed.
What Orders SEBI Has Issued
Under the December 4, 2025 order, SEBI has:
- Prohibited Avadhut Sathe, ASTA, and related entities from purchasing, selling securities or providing advisory/research services.
- Ordered them to refund ₹546 crore (certain reports cite ₹601.37 crore including interest) – the alleged unlawful gains collected from more than 3.37 lakh investors.
- Ordered freezing of bank accounts and placement of the funds under lien until further notice.
- Prohibited ASTA (and Sathe) from displaying live market data during sessions, highlighting past performance, or promoting success rates of course participants.
This action ranks among SEBI’s largest enforcement orders against a “finfluencer,” demonstrating the regulator’s increasing determination to stop unregulated market advisory masquerading as education.
Background: Why This Case Matters
Avadhut Sathe, who presents himself as a trader-turned-trainer, established ASTA in 2008. The academy gradually expanded to numerous cities and built a massive following through aggressive social-media promotion.
What alarmed SEBI, however, was the blurred boundary between “education” and “investment advice.” The regulator stressed that naming specific securities, issuing buy/sell calls or recommendations, and directing trade execution – these actions demand licensing. As SEBI’s chairperson had cautioned earlier in 2024: the moment you mention particular securities and provide buy/sell advice, you step out of the “educator” role and become an “advisor.”
Therefore, this case extends far beyond one individual or academy – it serves as a landmark warning that regulators are closely monitoring the entire “finfluencer” ecosystem. The crackdown seeks to shield retail investors from deceptive claims and unregistered advisory activities.
Reaction and What’s Next
In response to SEBI’s action, ASTA – via a public statement – has claimed that the crackdown misrepresents their role, asserting they are merely a training institution, not advisory.
Investors and media analysts view this as a critical turning point: the crackdown may discourage other self-proclaimed “market gurus” from providing unregulated stock tips. Several students and former participants have voiced worries that numerous individuals were misled – particularly those promised rapid profits or life-changing returns.
SEBI’s order is still interim, and the final proceedings may result in additional penalties or legal action – depending on replies from Sathe and ASTA. For now, the message stands clear: unregistered advisory disguised as “education” will not be tolerated.