The Securities Appellate Tribunal (SAT) on December 19, 2025, granted interim relief to Avadhut Sathe Trading Academy Private Limited (ASTAPL) and its founder, Avadhut Sathe. This decision temporarily lifts a ban imposed by the Securities and Exchange Board of India (SEBI). The SAT order allows the academy to continue its operations and access some of its funds. The tribunal also stayed SEBI's initial order until the next hearing, scheduled for January 2026.^[1][2][3] SEBI's Initial Crackdown and Allegations SEBI had issued an ex-parte interim order on December 4, 2025, against Avadhut Sathe and ASTAPL. The market regulator banned them from the securities market and directed them to disgorge ₹546.16 crore. SEBI called these funds "unlawful gains" from alleged unregistered investment advisory and research analyst activities. ^{[4][5][6][7][8]}The regulatory body accused ASTAPL and Avadhut Sathe of operating as unregistered investment advisers and research analysts. They allegedly provided specific investment advice, stock recommendations, and trading calls to investors. These activities require mandatory registration with SEBI. ^[4][6]SEBI's investigation, which began based on complaints and a warning issued in March 2024, found that ASTAPL was not merely educating students. The regulator claimed the academy was offering specific advice and recommendations. T^[4]he investigation showed that Sathe and ASTAPL collected ₹601.37 crore from over 3.37 lakh people. In^[6][9][10] August 2025, SEBI conducted a search and seizure operation at Avadhut Sathe's trading academy in Karjat. Officials seized digital devices and trading records during this two-day operation. SEB^{[11][4][12][7][13]}I alleged that the academy used live market data during classes without proper permission. It also claimed that the academy promoted penny stocks and provided trading tips through private WhatsApp groups. Th^[11]e regulator further stated that ASTAPL published video testimonials from students claiming extraordinary profits. However, SEBI's verification of actual trading records found that many of these individuals had incurred losses, not profits. SEB^[5]I highlighted that 186 participants in ASTAPL's mentorship program collectively lost ₹1.93 crore over six months. ASTAPL itself reported losses of over ₹1.89 crore, and Sathe personally lost ₹4.31 crore in trading across fiscal years 2024 to 2026. Academy ^[5]Denies Charges, Cites "Regulatory Vacuum" Avadhut Sathe Trading Academy denied all allegations made by SEBI. In a statement, ASTAPL asserted that it operates solely as an educational and training institution. The academy maintained it does not function as an investment adviser, research analyst, or financial influencer. ASTAPL s^{[7][9][10][13]}tated that its programs are designed only for skill-building and decision-making training in financial markets. The academy claimed it does not issue stock recommendations, provide investment advice, or monetize its social media platforms. The acad^[7][13]emy also argued that it was a "victim of a regulatory vacuum." It claimed its activities did not fall under the categories of Research Analyst or Investment Adviser. ASTAPL announced its intention to challenge SEBI's order. SEBI Chai^[5][7][13]rperson Tuhin Kanta Pandey later rejected the "regulatory vacuum" claim. Pandey stated that rules governing investment advice are clear and not open to interpretation. SAT Gran^[5]ts Interim Relief On December 19, 2025, the Securities Appellate Tribunal provided significant interim relief to Avadhut Sathe Trading Academy. The SAT order allows the academy to resume its operations. It also permits limited access to its funds, which SEBI had frozen. The trib^[1][2]unal's decision effectively stays SEBI's ex-parte interim order until the next hearing. This means the immediate restrictions imposed by SEBI are temporarily on hold. The next hearing in this case is set for January 2026. This int^[1][2]erim relief provides a temporary reprieve for ASTAPL and Avadhut Sathe. It allows them to continue their educational activities while the legal challenge against SEBI's order proceeds. The outcome of the January 2026 hearing will be crucial in determining the future of the academy and its founder.

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