Who's Avadhut Sathe, whose case is shaking India's finfluencer space?
What's the story
The Securities and Exchange Board of India (SEBI) has barred stock market influencer Avadhut Sathe and his firm, Avadhut Sathe Trading Academy (ASTA), from the securities market. The regulator has also ordered the recovery of ₹546.16 crore as "unlawful gain." The action comes after an investigation revealed that ASTA collected over ₹601 crore from more than 3.37 lakh investors by providing unregistered investment advice under the guise of stock market education.
Career transition
Sathe's journey from IT professional to finfluencer
Sathe, a Pune-based financial influencer, has been training retail investors in stock market trading for years. An engineer by training, he worked in the software industry before becoming a full-time trader and trainer. His interest in stock markets grew during his time abroad, where he started investing and initially made profits but later suffered losses. This experience changed his perspective on trading and led him to quit his IT career in 2007 to focus on trading and teaching.
Academy establishment
The inception of Avadhut Sathe Trading Academy
In 2008, Sathe held his first stock market seminar with just 12 participants. From this humble beginning, the Avadhut Sathe Trading Academy grew rapidly across India. His flagship course spanned four months and included four modules at a fee of around ₹18,000. The training combined live trading sessions, technical analysis, and direct mentorship to provide a comprehensive learning experience for students.
Regulatory action
SEBI's investigation reveals unregistered investment advisory services
SEBI's investigation into ASTA and Sathe found that they selectively displayed profitable trades of participants and promoted training programs by claiming attendees consistently made high returns. The regulator said the funds were "collected in the accounts of ASTA and AS (Sathe)." It also noted that neither entity is registered with SEBI as an investment advisor or research analyst but has been providing these services under the guise of stock market training programs to a large number of investors.
Regulatory measures
SEBI orders recovery and imposes restrictions
SEBI has ordered ASTA and Sathe to jointly repay ₹546.16 crore. The regulator also barred them from the securities market until further notice, and prohibited them from using live market data for any purpose or advertising performance/profits of themselves or their course participants. SEBI said this action is aimed at preventing ASTA and Sathe from misleading the public into dealing in securities, collecting fees from the public, and engaging in unregistered investment advisory activities.
Response
'We are a victim of a regulatory vacuum'
Sathe and ASTA have said they will challenge SEBI's ban and recovery order. In a statement, ASTA claimed it operates solely as an educational and training institute focused on imparting market-related skills and decision-making knowledge. "We are a victim of a regulatory vacuum and do not fall under the category of Research Analyst or Investment Adviser. We do not issue stock analysis or recommendations, investment advice or research, or execute transactions on behalf of our students," the statement added