Securities and Exchange Board of India (SEBI) barred unregistered financial advisor Avadhut Sathe and Gouri Avadhut Sathe for providing financial advice on market investment in without registration using live market data, according to an interim order published on Thursday (December 4, 2025).
“Preliminary examination in the matter indicated that ASTAPL/AS(Avadhut Sathe Trading Academy Pvt Ltd) was engaged in providing unregistered investment advisory and research analyst services under the guise of stock market education while using live market trading data during sessions. It was further observed that the ASTAPL/AS had collected substantial amounts of fees from unsuspecting investors. In addition, ASTAPL/AS was found to be disseminating misleading information and advertisements through social media platforms, aimed at inducing investors by portraying unrealistic returns from stock market activities,” wrote Whole Time Director Kamlesh C. Varshney in his interim order. The noticees had collected over ₹600 crore in fees from about 3.37 lakh investors, the order found.
Avadhut Sathe shared trade signals and recommendations with his participants on Whatsapp groups, encouraging participants to take specific trades. “In these paid WhatsApp groups, live trade advisory was disguised as chart study, further reinforcing misleading practices by ASTAPL/AS,” said Mr. Varshney.
Further, the noticees falsely claimed their course participants/investors achieved extraordinary market returns, misleading prospective course participants with exaggerated profitability claims, the order read. The participants’ trades were recorded, raising concerns of potential misuse. The noticees allegedly only showed profitable trades as promotional content, the order added.
The noticees allegedly gained ₹546 crore unlawfully from unregistered investment advisory, prompting SEBI’s interim order for the amount to be impounded. The regulator then barred Avadhut and Gouri Sathe from accessing the securities market and their advisory organisation to cease and desist from providing any investment advisory content.
SEBI has ordered for a disgorge of ₹601.38 crore along with interest. The aforesaid amount includes fees collected by the Noticees for all the other courses offered, as per the order.
Noticees have been directed to immediately withdraw and remove all websites, advertisements, representations, literatures, videos, brochures, materials, publications, documents, communications, etc. in relation to the unregistered investment advisory and research analyst services activity, until further orders.
However, the noticees have been asked to retain the aforesaid information/data for the purpose of quasi-judicial proceedings.
Noticees have been directed to provide a full inventory of all their assets whether movable or immovable, or any interest or investment or charge in any of such assets, including property, details of all their bank accounts, demat accounts, holdings of shares/securities if held in physical form and mutual fund investments and details of companies in which they hold substantial or controlling interest immediately but not later than 7 working days of this Order.
They have been further directed not to collect any money or fee from the existing course participants on account of investment advisory and research analyst services.
Within 15 days from the date of service of this order, the academy and Mr, Sathe have been directed to open fixed deposit accounts either in any Noticees’ name or jointly/severally with lien mark in favour of the SEBI and the monies kept therein shall not be released without the permission from the SEBI.
The fixed deposit account/s will be for, the amount of unlawful gains.
“Banks are directed that no debits shall be made, without the permission of the SEBI, in respect of the bank accounts held by Noticee nos. 1 and 2, [the Academy & Mr Sathe] except for the purposes of transfer of funds to the Fixed Deposit Account/s as directed hereinabove,” the order said.
Depositories also have been directed that no debit would be made, without the permission of the SEBI, in respect of the demat accounts held by Noticee nos. 1 and 2.
“However, credits, if any, into the accounts may be allowed. Banks and the Depositories are directed to ensure that all the aforesaid directions are strictly enforced. Further, debits in the bank accounts may also be allowed for amounts available in the account in excess of the amount to be impounded,” the order said.
Published – December 05, 2025 08:37 am IST
