Sebi bans finfluencer Avadhut Sathe, impounds Rs 546 crore for running unregistered advisory

India’s market regulator, the Securities and Exchange Board of India (Sebi), on Friday barred finfluencer Avadhut Sathe from accessing the securities market, alleging that he and his company, Avadhut Sathe Trading Academy Pvt. Ltd. (ASTAPL), were running an unregistered investment advisory business.

Sebi has impounded Rs 546.16 crore, terming it “unlawful gains.” The regulator has also directed banks not to allow any debit transactions from the accounts of Sathe and other noticees without its approval, except for transfers into lien-marked deposits.

In a 125-page order, Sebi noted that despite an administrative warning issued in March 2024 for misrepresentation and selective disclosures, the academy continued to release misleading promotional content that showcased only successful trades of its participants.

The regulator also cited multiple complaints alleging that the training programmes promised extraordinary returns but left learners with significant losses.

According to Sebi, Sathe’s academy conducted live market trading sessions where direct trade recommendations—including stock-specific tips, target prices, stop-loss levels, and directional calls—were issued. Video evidence reviewed by the regulator also showed Sathe displaying his own mark-to-market (MTM) positions during these sessions.

The probe further found that private WhatsApp groups, created for mentorship batches with fees as high as Rs 6.75 lakh, were used to circulate stock recommendations, option strategies, entry and exit prices, and index forecasts. Sebi concluded that these activities amounted to providing investment advice without registration, and that the inducements, specificity of guidance, and scale of fees indicated a prima facie violation of the Sebi Act.