Sebi Bans Avadhut Sathe Trading Academy, Freezes Funds For Illegal Advice
In a significant move to regulate the "finfluencer" landscape, the Securities and Exchange Board of India (SEBI) has taken decisive action against Avadhut Sathe and his Avadhut Sathe Trading Academy Pvt. Ltd. (ASTAPL). The market regulator has barred Sathe and his academy from the securities market and ordered them to jointly refund ₹546.16 crore, identifying the amount as illegal gains collected from unsuspecting investors. The order, issued on December 4, 2025, marks a turning point in SEBI's efforts to clean up the finfluencer ecosystem, where many online trainers offer stock tips and guidance without the necessary regulatory licenses.
SEBI's investigation was initiated following complaints that ASTAPL was not only offering trading courses but also providing buy and sell calls during live market sessions. The probe involved analyzing videos, WhatsApp messages, social media content, payment structures, and testimonies from participants. SEBI found that Sathe conducted live trading sessions where he instructed participants to enter specific trades with defined stop-loss and target prices, which the regulator deemed direct investment recommendations rather than education. The order stated that ASTAPL's activities went beyond general training, providing specific advice with entry and exit points, characteristic of an investment advisor, not an educator.
The investigation revealed that ASTAPL frequently advertised high-probability strategies that could "change a trader's life" and used screenshots of profitable trades to promote courses. SEBI's scrutiny of ASTAPL's operations uncovered a scheme where course participants were lured to trade in specific stocks based on Sathe's recommendations. The academy allegedly showcased only profitable trades, creating an illusion of guaranteed high returns and inducing investors to deal in securities.
SEBI's order reflects growing concerns that finfluencers operate outside the regulatory perimeter while performing the same role as registered advisors. The regulator emphasized that immediate action was required to prevent further harm to investors and the securities market. Sathe and ASTAPL are now prohibited from buying or selling securities, running any advisory activities, or conducting live trading sessions involving stock suggestions. Banks have been instructed to freeze their accounts until ₹546 crore is secured in fixed deposits under SEBI's lien.
The case has set a clear benchmark for what SEBI considers illegal. Trainers or influencers who provide stock-specific instructions, show live trades, or use private groups to guide market positions may be treated as unregistered advisors. SEBI has directed Sathe and his academy to cease offering unregistered investment advisory and research services immediately. They are also banned from advertising past performance or profits of their students and cannot use live market data for teaching purposes.
The regulator has also ordered a disgorgement of ₹601.38 crore, including interest, which encompasses fees collected for all courses offered. Sathe and ASTAPL must remove all websites, advertisements, and promotional material related to unregistered investment advisory and research analyst services.
This action sends a strong message to the finfluencer industry: those who influence trades must be registered, and no exceptions will be made. As more first-time traders turn to social media for guidance, SEBI is prioritizing transparency, accountability, and investor safety.
