has barred Avadhut Sathe Trading Academy Pvt Ltd (ASTAPL), and it’s proprietor from the securities market and ordered disgorgement of ₹546.16 crore in unlawful gains for carrying out unregistered investment advisory and research analyst activities, under the garb of education.
The academy has also been directed to stop offering unregistered investment advisory and research analyst services, retrained from buying, selling or dealing in securities and to square off any open positions within 3 months of the order.
Based on complaints received from investors and course participants, SEBI’s investigations into the activities of the academy found that while carrying out education on stock markets, they were also providing stock-specific advice to participants with assurance of returns.
The funds from course participants were collected in the accounts of ASTAPL and AS, while recommendations to buy or sell securities were issued “for a consideration, under the pretext of imparting education,” SEBI said in a 125-page interim order-cum-show cause notice.
Sathe played the central role in crafting a scheme in which participants of his training programmes were nudged into trading specific stocks. The regulator said that while Gouri Avadhut Sathe was involved in the daily operations of the company, she “was not found to be providing any investment advisory or research analyst services.”
“In these paid WhatsApp groups, live trade advisory was disguised as chart study, further reinforcing misleading practices by ASTAPL/AS,” said whole-time member Kamlesh Chandra Varshney. “It is clear that none of the noticees 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 programmes.”
“…so far as impounding of the proceeds to the tune of ₹5,46,16,65,367 is concerned, ASTAPL and AS are jointly and severally liable for the same,” he said.
“It is necessary to take urgent preventive action… to prevent ASTAPL/AS from misleading the public or influencing investors to deal in securities,” SEBI said, adding that the interim directions were essential to halt ongoing unregistered activities.
The academy had collected ₹ 601.4 crore as fees during the period July 25, 2015 and October 9, 2025.
Out of these funds SEBI said it found evidence of unregistered activity in respect of eight of the courses that were offered to the public from January 1, 2020 to October 9, 2025 and the amount attributable to these courses were of the order of ₹546.2 crore.
However, Avdhut Sathe Trading Academy has denied the allegations mentioned in the SEBI order, saying that it operates solely as a training institution. “We are a victim of regulatory vaccum and do not fall under the category of research analyst or investment adviser,” it said in a statement.
“We do not issue stock analysis or recommendations, investment advice or research or execute transactions on behalf of our students. All interactions, references, and examples used in our sessions are presented purely for educational and conceptual clarity. They are contextual in nature and are not to be construed as advisory or recommendation of any kind,” it said.
The order also indicated that the amount collected should be refunded to the course participants and investors.
“It may be noted that this order does not seek to stop noticees from carrying out educational activity but to cease and desist with respect to violations that are narrated in this order,” the order pointed out.
If Noticees are willing to carry out educational activity there is no prohibition but they must abide by relevant regulations.
The Noticees cannot give securities specific advice whether directly or indirectly through their trades. They should not give any assurance of return. The Noticees should use only old data for education purpose, it added.
The company has been given 21 days to reply to the show cause notice. The amount to be impounded has been directed to be deposited in separate account.