Sebi issues a ban and orders ₹546 crore disgorgement against influencer Avadhut Sathe's firm - Market News

Sebi Bars Financial Influencer Avadhut Sathe and His Firm from Securities Market

India's market regulator, Sebi, has taken a significant step in protecting investors from unregistered investment advisory and research analyst services.

Key Points:

• Sebi has barred financial influencer Avadhut Sathe and his firm Avadhut Sathe Trading Academy Pvt Ltd from the securities market.
• The regulator has directed them to disgorge Rs 546 crore of ‘unlawful gain’ earned from the alleged unregistered investment advisory and research analyst business.
• Sebi has noted that Avadhut Sathe Trading Academy Pvt Ltd (ASTAPL) is operated by financial influencer Avadhut Sathe (AS) and that Gouri Avadhut Sathe was involved in the day-to-day affairs of the company.

What did the Order Say?

Sebi's 125-page interim order cum show cause notice revealed that the funds were collected in the accounts of ASTAPL and AS. The regulator noted that AS played a major role in devising a scheme, wherein course participants were lured to trade in specific stocks.

Sebi's Directions:

• Sebi has directed Avadhut Sathe and his academy to cease and desist from offering unregistered investment advisory and research analyst services.
• They have been ordered to stop acting as or holding themselves out to be investment advisors/research analysts.
• The noticees have been prohibited from using live data for any purpose and advertising performance or profits of themselves or their course participants/investors.

Why is this Action Urgent?

Sebi has stated that it is necessary to take urgent preventive action in this matter to prevent ASTAPL/AS from misleading the public or influencing investors to deal in securities, collecting fees from the public, and engaging in unregistered investment advisory and research analyst activities.

What's Next?

Sebi has directed Sathe and his academy to jointly disgorge Rs 546.16 crore being the total unlawful gain earned prima facie from the alleged unregistered investment advisory and research analyst business.