Capital market regulator SEBI has pulled up Avadhut Sathe Trading Academy and its founder, Avadhut Sathe, for allegedly running unregistered investment advisory and research analyst services under the guise of stock market education, issuing an ex-parte interim order-cum-show cause notice after a detailed investigation. The regulator has alleged misleading promotions, stock-specific trading calls and practices that exposed retail investors to significant risks.
SEBI carried out search and seizure operations at three entities’ premises
SEBI conducted a search and seizure operation on the premises of three notices — Avadhut Sathe Trading Academy, Avadhut Dinkar Sathe and Gouri Avadhut Sathe — on August 20-21, which led to the recovery of videos, chats and other digital evidence supporting the allegations.
| Entity | PAN |
| Avadhut Sathe Trading Academy | AATCA1675K |
| Avadhut Dinkar Sathe | BCSPS7915K |
| Gouri Avadhut Sathe | BIUPS6942Q |
Investigators found that the academy was offering investment Advisory and research analyst services without registration, and giving stock-specific advice — including entry levels, targets and stop-loss levels — during live course sessions, and sharing stock calls, targets and market direction on WhatsApp groups.
The regulator also alleged that the academy promoted itself by showing only profitable trades, which was misleading. Several participants complained, according to SEBI, that they suffered heavy losses despite the promises made.
What distinguishes education and advice or recommendation?
SEBI noted that “a person engaged solely in education shall mean that such person is not engaged in any of the two prohibited activities. Such person should not be using the market price data of the preceding three months to speak/talk/display the name of any security including using any code name of the security in his/her talk/speech, video, ticker, screen share etc. indicating the future price, advice or recommendation related to security or securities.”
SEBI ordered the noticees to disgorge Rs 601.4 crore along with applicable interest — an amount that includes fees collected across all courses.
As per the SEBI order, the course fees — deemed as fee collection for unregistered advisory services — ranged from Rs 500 to Rs 6.75 lakh. Complaints also alleged that the staff members encouraged participants to take loans to pay the course fees. It also proposed to restrain them from accessing the capital market.
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