India's market regulator, the Securities and Exchange Board of India (SEBI), has taken strong action against financial influencer Avadhut Sathe and his training academy. SEBI ordered the impounding of ₹546.16 crore, calling these "unlawful gains" from unregistered investment advisory services. The regulator also barred Sathe, his wife Gouri Avadhut Sathe, and Avadhut Sathe Trading Academy Private Limited (ASTAPL) from the securities market until further notice. This significant crackdown comes after an investigation found the academy allegedly provided specific stock recommendations under the guise of education. ^{[1][2][3][4][5][6][7][8][9]}### Allegations of Unregistered Advisory SEBI's interim order, issued on Thursday, December 4, 2025, alleges that ASTAPL operated as an unregistered investment adviser and research analyst. The academy, founded by Avadhut Sathe, offered various paid programs and live sessions. These activities, according to SEBI, went beyond mere education. T^{[1][10][7][11][12]}he regulator stated that Sathe and ASTAPL provided specific investment advice, stock recommendations, and trading calls. Such activities require mandatory registration with SEBI. ^{[1][5][7][12]}The investigation covered the academy's operations between January 2020 and October 2025. During this period, the entities allegedly collected ₹546.16 crore through eight key courses. Ove^[1][2][5][6]rall, the academy collected over ₹601 crore from more than 3.37 lakh participants since its launch in 2015. SEBI'^{[1][3][6][8][9]}s order highlights the firm's significant presence across social media platforms. This ^[2]online footprint included a YouTube channel with nearly a million subscribers. ### ^[4][9]SEBI's Evidence and Findings SEBI's investigation relied on several pieces of evidence. This included video recordings that showed Avadhut Sathe providing precise entry and exit points for trades. He also shared stop-loss levels and price targets for specific stocks like Kotak Mahindra Bank and Reliance Industries. These^[1] recommendations were given during paid sessions. Sathe^[1] also managed multiple paid WhatsApp groups, such as "Mentor Batch" and "VOW groups." Here, he regularly broadcast buy and sell recommendations, targets, and even his own trading positions to members. The ^[1]regulator initiated its probe based on complaints from investors. Many ^[1][3][4]complainants alleged substantial losses despite promises of extraordinary returns. SEBI ^[3][4]had also issued an administrative warning to ASTAPL and Sathe in March 2024. This warning cautioned them against misrepresentation and selective disclosures. Howev^{[1][3][5][12]}er, the entities reportedly continued publishing misleading videos and advertisements even after this warning. A ke^[3][5]y finding by SEBI involved the academy's promotional content. ASTAPL published video testimonials from students claiming exceptional profits from trading. Howev^[1]er, SEBI verified the actual trading records of these individuals. The regulator found that these students had, in fact, incurred losses, not profits. Furth^[1][5]ermore, SEBI's analysis revealed that Avadhut Sathe and his company recorded trading losses exceeding ₹6.19 crore in the last two financial years. This oc^[1]curred despite Sathe presenting himself as a market expert. ### Mi^[1]sleading Claims and Investor Impact The academy's marketing strategy allegedly aimed to induce investors by portraying unrealistic returns. Promoti^[2][3]onal materials showcased selective profitable trades of participants. They cl^[3][5]aimed that course participants consistently earned through trading. Trainer^[3]s at ASTAPL and Sathe were also projected as stock market experts. However^[3], SEBI's analysis showed that all such trainers and participants were actually in net losses. SEBI a^[2]lso noted that the academy urged investors to take loans to join and pay for its courses. One pro^[13]motional video even featured a 12-year-old child. This video falsely suggested that stock trading became effortless after undergoing the training. Such ta^[13]ctics manipulated perceptions to drive course enrollments. SEBI ex^[13]pressed concern that gullible investors might continue to fall prey to these activities, influenced by the social media presence and followership of ASTAPL and Sathe. The re^[2]gulator's order means Avadhut Sathe and ASTAPL must immediately stop all unregistered advisory and analyst activities. They are also restrained from buying, selling, or dealing in securities. Banks h^[1][10][6]ave been instructed to freeze their accounts. Demat accounts are also frozen, except to facilitate the impounding of funds. All rel^[1][6]ated advertisements, websites, and videos must be taken down. ### Th^[1][13]e Academy's Defense Avadhut Sathe Trading Academy (ASTA) has denied all allegations made by SEBI. The academy stated that it functions purely as an educational and training institution. It plan^{[5][11][14][15]}s to challenge SEBI's interim order. ASTA ma^[5][14][15]intains that it does not provide investment advice, personalized guidance, or manage client funds. In its^[15] statement, ASTA argued that it is a "victim of a regulatory vacuum" in India. It clai^[5][15]ms that proper guidelines for conducting such educational courses are not yet defined. The aca^[15]demy asserted that it has never accrued or garnished any "unlawful gains" from advisory or research services. It also^[11][15] stated that the regulations cited by SEBI do not apply to training-only entities. ASTA em^[11][15]phasized that all market examples used in its programs are for educational and conceptual clarity only. They should not be interpreted as advisory. ASTA a^[5][15]lso clarified that it does not monetize its YouTube, Instagram, or Telegram channels. Therefo^[11]re, it argues it cannot be categorized as a "finfluencer." The aca^[11]demy stated that instructors do not provide stock tips or specific investment advice. Partici^[15]pants make their own trading decisions. The mon^[15]ey collected, according to ASTA, represents course fees paid by students over several years, not investment fees. ### Br^[15]oader Implications for Finfluencers This action by SEBI is one of its most significant crackdowns against a financial influencer. It unde^{[16][3][4][13]}rscores the regulator's commitment to protecting investors from misleading claims. It also highlights the importance of proper registration for those offering investment advice. SEBI Whole Time Member Kamlesh C Varshney emphasized that such actions aim to warn market educators and influencers. He stated that one cannot misguide youth in the name of education by giving calls in classrooms or promising guaranteed returns. The re^[4]gulator has intensified its scrutiny of "finfluencers" who provide financial advice without proper registration. These i^[2][4][5]ndividuals create content on money-related topics across social media platforms. SEBI's ^[2]stance is clear: activities involving specific buy or sell recommendations, targets, and stop-loss levels constitute investment advisory services. These services require mandatory registration and adherence to regulatory standards. The ong^{[1][4][5][7][12]}oing investigation and the severe penalties indicate a stricter regulatory environment for online financial educators. SEBI has directed Avadhut Sathe and ASTAPL to provide a full inventory of all their assets. This includes property, bank accounts, demat accounts, and investments. They mu^[10]st submit this information within seven working days. The reg^[10]ulator's firm stance aims to safeguard investor interests and ensure transparency in the securities market.

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