Avadhut Sathe told to return Rs 14 crore as SEBI flags unregistered market advisory

The Securities and Exchange Board of India (SEBI) has directed market trainer Avadhut Sathe and his company Avadhut Sathe Trading Academy Pvt Ltd (ASTAPL) to refund ₹13.99 crore, after an investigation found that his stock-market “education ecosystem” was functioning as an unregistered investment advisory business rather than a training platform. The regulator said the amount represents the net unlawful gains collected from thousands of students over multiple years.

Training Classes Masked as Investment Advice

According to SEBI, Sathe used his network of trading groups, online sessions and in-person classes to provide real-time trading advice, tips and strategies, despite not holding an Investment Adviser (IA) registration. The order says the programme structure—beginner to advanced courses—was designed in a way that “systematically graduated students into advisory-dependent trading groups,” making the activity indistinguishable from paid investment advice.

The regulator flagged serious concerns over Sathe’s claims of using algorithmic and rule-based systems to generate trading returns, finding that the so-called algorithms did not exist in the form advertised. SEBI also noted the use of curated student success stories, testimonials, and trading screenshots to attract new buyers—tactics prohibited for any advisory service operating without registration.

Investor Money Routed Through Multiple Entities

The order shows that Sathe routed course and subscription fees through ASTAPL and connected entities, creating what SEBI described as an “ecosystem of commercialised market advice.” These structures allowed revenue to flow continuously from the same student base under the guise of education, while the activities being carried out fell squarely under the IA regulations.

SEBI has barred Sathe and all associated entities from taking any new clients, offering market courses, or issuing trading instructions until the completion of proceedings. The regulator said their conduct posed “a systemic risk to retail investors,” warranting immediate restrictions alongside the ₹13.99-crore refund direction.