India’s market regulator SEBI took action against Mumbai-based finfluencer Avadhut Sathe and his company Avadhut Sathe Trading Academy Pvt. Ltd. (ASTAPL) for allegedly giving investment advisory in the guise of education, stating that they were operating without mandatory regulatory registration.
Why SEBI Took Action
SEBI’s investigation found that Sathe’s company, Avadhut Sathe Trading Academy Pvt. Ltd. (ASTAPL), collected Rs. 601.37 crore from more than 3.37 lakh participants since 2015. Although the company claimed to be a trading-education platform, SEBI observed that it was allegedly offering stock-specific recommendations, trade entry–exit levels, and live instructions, all of which qualify as investment advisory, not education.
Since neither Sathe nor his company was registered as an Investment Advisor (IA) or Research Analyst (RA), SEBI classified the activity as unregistered advisory, which is illegal.
The regulator also noted that participants were lured into trading specific stocks, and promotional content showcased only profitable trades, creating a misleading impression. Based on these findings, SEBI identified Rs. 546.16 crore as unlawful gains — money earned through services that violate regulatory rules. This amount has been impounded as an interim measure.
Who Is Avadhut Sathe?
Sathe describes himself as a trading educator. However, SEBI’s investigation suggests that his role resembled that of a finfluencer — someone who uses social media platforms to influence people’s financial decisions through trading strategies, market predictions, and stock-related content. Unlike financial educators who teach concepts and theory, fininfluencers often guide followers on how to make market profits, which requires regulatory approval.
This distinction is at the heart of the controversy.
SEBI: The Market Watchdog
The Securities and Exchange Board of India (SEBI) is the country’s market regulator. It ensures that stock markets operate fairly, transparently, and without manipulation. SEBI protects investors, enforces market discipline, and requires anyone offering investment advice to:
Register with the regulator
Meet qualification standards
Follow disclosure rules
Avoid guaranteed returns and misleading claims
When these rules are ignored, SEBI can freeze accounts, issue bans, demand repayment of illegal earnings, and impose penalties.
What Counts as Advisory?
Investment advisory involves telling people what to buy, sell, or hold, often with:
Price targets
Stop-loss levels
Real-time trade instructions
This is fundamentally different from teaching how markets work. Only registered advisors can legally offer such guidance in India.
In Sathe’s case, SEBI found examples of live trade rooms, real-time instructions, and specific stock guidance, which pushed the activity beyond education into advisory territory.
Trading Academy vs Advisory: The Lakshman Rekha
A trading academy may teach:
Market concepts
Chart reading
Trading psychology
Risk management
This is allowed.
But when training shifts into “Here is the stock to buy now”, or “Exit this position immediately”, it becomes advisory — and requires SEBI approval. SEBI’s findings indicate that Sathe’s academy crossed this line.
From Education Brand to Enforcement Case
Despite Sathe’s defence that his platform only provided training and no personalized recommendations, the recorded sessions, chats, and evidence gathered by the regulator suggested otherwise. SEBI concluded that the academy’s activities directly influenced participants’ trading decisions, rendering the earnings unlawful.
What Action has SEBI taken against Sathe?
Sathe and his academy have been barred from the securities market
Their bank and demat accounts are frozen
The company must respond to SEBI’s Show Cause Notice within 21 days
SEBI has identified and impounded Rs 546.16 crore as unlawful gains
The case is still under investigation, and the impounded amount is an interim figure.