Authority: Securities and Exchange Board of India (SEBI), Quasi Judicial Authority N. Murugan

Order Date: October 23, 2026

Case Overview

The proceedings emanate from an Interim Order cum Show Cause Notice dated December 04, 2025 against Avadhut Sathe Trading Academy Private Limited (ASTA), Avadhut Dinkar Sathe (AS), and Gouri Avadhut Sathe (GS). SEBI investigated the entities for providing unregistered investment advisory and research analyst services under the guise of stock market education during the period from July 01, 2017 to October 09, 2025.

The principal allegations included:

  • Violation of Section 12(1) of the SEBI Act, 1992 read with Regulation 3(1) of the SEBI (Investment Advisers) Regulations, 2013 and Regulation 3(1) of the SEBI (Research Analysts) Regulations, 2014 for conducting unregistered activities
  • Violation of Sections 12A(a), (b) and (c) of the SEBI Act read with Regulations 3(a)-(d), 4(1) and 4(2)(k), (o) and (s) of the PFUTP Regulations for fraudulent and unfair trade practices
  • Disseminating false and misleading information through social media testimonials showing inflated profits
  • Mis-selling investment advisory services by portraying false returns and concealing unregistered status
  • Collecting ₹601.37 crore from course participants between July 25, 2015 and October 09, 2025

SEBI's investigation found that despite an Administrative Warning dated March 01, 2024, ASTA/AS continued to publish misleading videos and provide specific securities recommendations, entry/exit targets, stop-loss suggestions, and directional forecasts during live market sessions. The analysis of testimonial videos showed participants had actually suffered net losses contrary to advertised claims.

The authority examined extensive evidence including 200 documentary exhibits and 115 video recordings, and conducted multiple personal hearings between March 17, 2026 and October 13, 2026 where the Noticees presented their defense.

Final Outcome

SEBI found ASTA and AS guilty of:

1. Providing unregistered investment advisory and research analyst services through live sessions and WhatsApp groups

2. Disseminating false and misleading testimonials in violation of Regulation 4(2)(k) of PFUTP Regulations

3. Fraudulently inducing investors to enroll in programs to enhance their income in violation of Regulation 4(2)(o) of PFUTP Regulations

4. Mis-selling services by portraying false returns and failing to ensure suitability in violation of Regulation 4(2)(s) of PFUTP Regulations

GS was held liable under Section 27 of the SEBI Act for being in charge of ASTA's business during the violation period.

The order directs:

  • ASTA and AS to jointly disgorge ₹546.17 crore collected from relevant programs within 5 months
  • Payment of interest amounting to ₹67.87 crore to be deposited in SEBI's Investor Protection and Education Fund (IPEF)
  • Public notice in national newspapers for refund modalities
  • Freezing of bank accounts except for refund purposes
  • Debarment of ASTA and AS from securities market for 2 years or until disgorgement completion
  • Debarment of GS from securities market for 6 months
  • Monetary penalties: ASTA - ₹6 crore, AS - ₹4 crore, GS - ₹1.5 crore

Topics: Unregistered Investment Advisory, Financial Fraud, Regulatory Action