SEBI raids finfluencer Avadhut Sathe’s Karjat academy in two-day operation

The Securities and Exchange Board of India (SEBI) has intensified its crackdown on financial influencers, with a two-day search and seizure operation at the Karjat-based academy of market mentor and finfluencer Avadhut Sathe, according to media reports.

The raid, which began in the early hours of August 20 and continued till late evening on August 21, was carried out by SEBI officials led by a deputy general manager. Trading records, digital devices, and other materials were confiscated for forensic examination. Sources quoted in reports said the action was meticulously planned, with prior court approvals, reconnaissance, and surveillance of movement patterns.

Sathe, who operates the Karjat Trading Academy, enjoys a massive retail following through his YouTube channel, which has nearly 9.4 lakh subscribers. His popularity among retail traders has kept him on the regulator’s radar for several months.

Speaking at a FICCI event after the raids, SEBI whole-time member Kamlesh Chandra Varshney confirmed that the regulator had conducted “a big search operation on a big name in this industry,” though he did not directly name Sathe. He stressed that the move was aimed at sending a strong warning to influencers who mislead young investors.

“One cannot misguide the youth in the name of education by giving calls in classrooms, promising guaranteed returns, or using live trading data. Such activities require SEBI registration,” Varshney said.

According to media reports, the market watchdog had received complaints alleging that some trading academies push penny stocks in collusion with operators, often citing them as classroom examples to influence students.

The action against Sathe comes as part of SEBI’s larger drive to regulate finfluencers and unlicensed market educators. The regulator has already tightened disclosure norms and increased oversight of social media voices promoting stock tips without authorisation.

With India witnessing a surge in retail investor participation, SEBI’s Karjat operation underscores its intent to clamp down on misleading financial advice and ensure investor protection.