The market regulator has barred a popular trading “guru” from the securities market and frozen hundreds of crores in assets, accusing him of running an unauthorized investment advisory scheme disguised as education.
The Securities and Exchange Board of India (SEBI) has issued a major interim order barring financial influencer Avadhut Sathe and his firm, Avadhut Sathe Trading Academy (ASTA), from the securities market. In one of its largest crackdowns on unregulated “finfluencers,” the regulator has directed the impounding of ₹546.16 crore ($64 million), which it alleges was unlawful gain collected from thousands of investors under the pretext of stock market training courses.
The order follows a detailed investigation into Sathe’s operations between 2017 and October 2025. SEBI found that while Sathe claimed to be teaching stock trading, he was effectively providing “unregistered investment advisory services.” His courses, priced anywhere from ₹500 to lakhs of rupees, reportedly included live trading sessions where he gave specific buy and sell recommendations to students an activity that strictly requires a SEBI license.
According to the 125-page order, Sathe and his academy collected a total of ₹601.37 crore from over 3.37 lakh individuals across the country. SEBI noted that the academy lured investors by promising “guaranteed returns” and selectively showcasing only profitable trades while hiding the losses incurred by students.
The regulator stated that the funds were funneled into the personal accounts of Sathe and his company. Banks have been directed to freeze these accounts immediately to prevent the diversion of funds.
“The noticees (Sathe and ASTA) have been recklessly misleading, soliciting and inducing investors to deal in the securities market… without having the requisite registration certificate,” SEBI stated in its order.
“It is necessary to take urgent preventive action… to prevent ASTAPL from misleading the public or influencing investors to deal in securities,” the regulator added, justifying the immediate ban.
This action is part of a widening dragnet by SEBI against social media influencers who provide stock tips without accountability. The regulator has recently tightened norms, warning regulated brokers to disassociate from unregistered advisors.
Sathe, a former IT professional who worked in the US before turning to trading, had amassed a significant following on social media. His academy had previously been raided by SEBI officials in August 2025, a move that signaled the regulator’s intent to scrutinize his operations closely.
Sathe and his academy have been given 21 days to file their objections to the interim order. However, until a final ruling is passed, they are prohibited from advertising, taking new clients, or accessing the capital markets. The impounded funds are intended to be held in an escrow account, potentially to be refunded to investors at a later stage.
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