New Delhi: The Securities and Exchange Board of India (SEBI) has taken strict action against well-known financial influencer Avadhut Sathe, directing him and his academy to return ₹546.2 crore collected from investors through allegedly misleading practices. The regulator has also barred Sathe and his Avadhut Sathe Trading Academy from offering investment advisory or research analyst services without proper registration and prohibited them from trading in the stock market until further notice.
Misleading Millions
SEBI found that Sathe and his academy had raised over ₹601 crore from approximately 3.4 lakh investors by allegedly providing false and selective information to entice them into stock market investments. These activities were conducted without the necessary registration certificates, a clear violation of securities laws. SEBI clarified that if Sathe and his academy wish to continue educational activities, they must strictly comply with market regulations.
High Fees and Misleading Promotions
The regulator’s 125-page order noted that Sathe and his academy used live market trading data during training sessions to project unrealistic returns, thereby luring unsuspecting investors. Investors were charged exorbitant fees for these courses, and promotional content on social media was found to misrepresent profits, showing only selected successful trades while participants actually suffered losses.
Background of the Complaint
Participants of Sathe’s courses and academy members repeatedly claimed consistent gains from trading under the guidance of “expert trainers.” However, SEBI’s investigation revealed that most participants were incurring losses, and the trainers were not genuine market experts. In March 2024, SEBI had already issued warnings to Sathe and his academy against false representations and selective data, but these were ignored. Complaints included recordings of sessions and other relevant documents, proving the misleading nature of the activities.
SEBI’s Action
- Recovery order: ₹546.2 crore from Sathe and his academy
- Ban: Provision of investment advisory or research analyst services without registration
- Prohibition: No trading in the stock market until further orders
- Compliance: Any educational activities must adhere fully to securities regulations
This order underscores SEBI’s vigilance against misleading financial influencers and its commitment to protecting investors from fraudulent practices.
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