Sebi refutes finfluencer Avadhut Sathe’s defence, flags misuse of live trading rooms
Last week, Sebi barred finfluencer Avadhut Sathe from the securities market, alleging that he and his company, Avadhut Sathe Trading Academy Pvt. Ltd. (ASTAPL), were operating an unregistered investment advisory business.
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The Securities and Exchange Board of India (Sebi) on Monday dismissed claims by the Avadhut Sathe Trading Academy (ASTA) that the regulator’s probe suffered from a “regulatory vacuum,” reaffirming that rules governing investment advice are unambiguous.
According to a report by Livemint, Sebi chairperson Tuhin Kanta Pandey at an NSE event said, “There is no regulatory vacuum. There is a lack of understanding because the regulations are clear - you cannot give stock-tip advice.”
Last week, Sebi barred finfluencer Avadhut Sathe from the securities market, alleging that he and his company, Avadhut Sathe Trading Academy Pvt. Ltd. (ASTAPL), were operating an unregistered investment advisory business. The regulator also impounded Rs 546.16 crore, calling it “unlawful gains,” and instructed banks to block all debit transactions from accounts linked to Sathe and other noticees, except for transfers into lien-marked deposits.
Following the order, ASTA claimed it was “a victim of a regulatory vacuum,” arguing it does not issue stock tips or recommendations, and that any market illustrations used in sessions were for “conceptual clarity.” The firm said it would challenge the order and maintained that it falls outside the definitions of both research analysts and investment advisers.
However, Sebi said its investigation found the academy functioned less as a training institute and more as an advisory operation. During a search at ASTA’s premises in August, officials observed “live trading rooms” where participants received actionable intraday cues, including buy-and-sell levels, stop losses, resistance points and strategy guidance. According to the probe, students executed trades based directly on Sathe’s prompts.
Sebi also reviewed six months of post-program trading outcomes for participants enrolled in ASTA’s Rs 6.75 lakh mentorship course. Of the 311 trainees, 186 collectively lost Rs 1.93 crore. ASTA itself reported losses of Rs 1.89 crore, while Sathe personally incurred trading losses of Rs 4.31 crore across FY24–26.
Pandey further warned against the misuse of real-time market data under the pretext of education. “Live data should not be used at all for educational purposes,” he said.
