Sebi pulls plug on Avadhut Sathe's trading academy operations

Sebi Orders Avadhut Sathe and Trading Academy to Cease Unregistered Services

Avadhut Sathe, a financial influencer, and his academy have been directed by the Securities and Exchange Board of India (Sebi) to stop unregistered investment advisory and research analyst services.

Terms of the Order

• Banned from trading securities
• Required to return ₹546 crore earned from alleged illegal business
• Not allowed to use live stock exchange data for any purpose
• Prohibited from advertising performance of profits of themselves or their course participants

Background of the Case

Sebi found that Avadhut Sathe and his academy provided advice without registration, misleading over 3.37 lakh investors. They collected ₹601 crore from more than 3.37 lakh investors for their services.

As per Sebi's whole-time member, Kamlesh Varshney, "It is clear that none of noticees (Avadhut Sathe and his Avadhut Sathe Trading Academy) are registered with Sebi as investment advisor or research analyst. However, despite being not registered, noticees have been providing investment advisory and research analyst services under the guise of their stock market training programs to a large number of investors."

Investigation Findings

• The noticees have been recklessly misleading, soliciting and inducing investors to deal in the securities market on the basis of investment advice and stock analysis without having the requisite registration certificate.
• The academy selectively showcased only profitable trades of course participants and thereby misled course participants regarding actual trading performance.
• The quality of teaching was not as effective as represented or marketed, and staff members of the academy solicited individuals to take loans in order to pay the course fees.

Consequences

Sebi has issued a 125-page order to Avadhut Sathe and his academy to cease and desist from offering unregistered investment advisory and research analyst services.