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The Securities Appellate Tribunal (SAT) has granted partial relief to trader Avadhut Sathe and his training firm, Avadhut Sathe Trading Academy (ASTA), by modifying the Securities and Exchange Board of India’s (SEBI) interim order that had impounded ₹546 crore and imposed sweeping market and account restrictions.
The tribunal, on Thursday, directed Sathe and his academy to deposit ₹100 crore in a fixed deposit with a bank, with a lien marked in favour of SEBI. Upon compliance, several restraints imposed by the regulator, including restrictions on accessing the securities market, selling securities, investments in mutual funds, and debit freezes on bank and demat accounts, will cease to operate.
The SAT order said the appeal was “allowed in part” and modified SEBI’s directions to the extent that the specified restrictions would stand lifted once the ₹100-crore deposit is made. The appellants have also been directed to file a compliance affidavit.
SEBI’s December 4 interim order had directed Sathe and ASTA to impound ₹546 crore, which the regulator termed as alleged unlawful gains, and barred them from the securities market until further orders. It had also frozen debit transactions in their bank and demat accounts.
The market regulator had alleged that Sathe and his academy were providing stock tips and investment advice to students without being registered as a research analyst or investment adviser. SEBI further accused the academy of attracting students through misleading advertisements promising trading profits. SEBI’s findings were based on investigations between July 2017 and October 2025, besides a search and seize operation conducted on Sathe’s premises on August 20 and 21, 2025.
Sathe and his academy denied the allegations, challenging both the findings and the quantum of the impounding order. Their counsel submitted that there were no funds available to be impounded, as the money had been utilised for setting up and running the academy, paying statutory taxes and levies, and undertaking welfare and corporate social responsibility activities.
They also rejected SEBI’s claim of providing stock tips, contending that the regulator had relied on selective WhatsApp messages without appreciating the broader context. Disputing allegations of misleading testimonials, Sathe’s side maintained that students were earning profits and defended the use of live market charts during training, likening it to practical instruction essential in professional education.