The Securities and Exchange Board of India (SEBI) has issued a strict interim order against Avadhut Sathe and the Avadhut Sathe Trading Academy (ASTA), barring them from accessing the securities market and directing the impounding of approximately ₹546.16 crore in alleged unlawful gains. This sweeping crackdown is one of SEBI’s largest actions against a financial influencer in India, as the regulator aims to curb unregistered advisory activities and protect retail investors from misleading claims and aggressive marketing tactics. The order also requires a much larger sum to be refunded to thousands of participants who subscribed to ASTA’s programs over several years.
What SEBI’s order says and why it matters
In its December 2025 interim order, SEBI concluded that Avadhut Sathe Trading Academy was offering stock-specific recommendations and investment strategies under the guise of “trading education.” According to SEBI, these activities required proper registration either as a Research Analyst (RA) or Investment Advisor (IA), neither of which ASTA possessed. As a result, the regulator classified revenues earned through such activities as unlawful gains. The order also freezes several assets and restricts Sathe and ASTA from conducting or promoting any market-related activity until the investigation reaches its final stage. SEBI’s findings stress that investor protection cannot be compromised, especially in an online environment where financial influencers can quickly reach millions.
Numbers and scale: how many people were affected?
SEBI’s findings reveal that ASTA and its promoters collected over ₹601 crore from more than 3.37 lakh participants through training courses, online programs, and subscription-based coaching sessions. Out of this, ₹546.16 crore has been identified as unlawful gain subject to impounding. What makes the case even more significant is the unprecedented scale of participation, highlighting how deeply the finfluencer-driven training ecosystem has penetrated tier-1, tier-2, and even tier-3 cities. For many participants, the promise of quick profits and success stories proved attractive, but SEBI’s detailed analysis suggests that most real outcomes did not match the promotional narratives seen online.
How the regulator describes the alleged misconduct
SEBI states that ASTA’s marketing highlighted only profitable trades while masking losses, creating an impression of guaranteed success. The regulator notes that live trading cues, selective performance displays and aggressive branding effectively turned ASTA’s “educational programs” into unregistered advisory sessions. SEBI maintains that such selective disclosure can mislead inexperienced investors into believing that stock market returns are quick, consistent and assured. By outlining these details, the regulator aims to draw a clearer line between legitimate financial education and activity that crosses into advisory or research services without authorization. This case may set a new benchmark for compliance expectations in the online trading education sector.
Reaction from Avadhut Sathe Trading Academy and the wider market
In response, Avadhut Sathe Trading Academy has rejected SEBI’s allegations, stating that its platform is purely educational and does not provide stock tips, buy/sell calls or personalized advisory. ASTA has indicated that it will challenge the interim order. Meanwhile, the financial community is watching closely, as the case highlights how finfluencers operate in a regulatory grey zone. Experts believe the order is a wake-up call, signaling that SEBI intends to tighten oversight of online financial educators and content creators, especially those who leverage social media popularity to promote paid trading programs.
Implications for retail investors and “finfluencers”
This action sets a strong precedent for both investors and influencers in the financial education space. Retail investors are again reminded that only registered advisors can legally provide actionable investment advice. They must remain cautious about promotional claims, flashy lifestyle marketing and cherry-picked profit screenshots. For finfluencers, the order demonstrates that regulatory scrutiny is intensifying; any attempt to offer trading calls, real-time strategies or implied performance claims without registration can result in heavy penalties, bans and asset freezes. SEBI’s move may encourage more transparency, proper disclosures and industry-wide compliance reforms in the coming months.
Practical steps for learners and customers
- Always check whether an educator or advisor is registered with SEBI before relying on stock-specific strategies or recommendations.
- Request complete performance records instead of relying on selectively displayed successful trades or testimonials.
- Choose structured educational programs that focus on market theory, risk management and long-term strategy development rather than real-time trading prompts.
Conclusion
The SEBI order against Avadhut Sathe Trading Academy marks a turning point for India’s financial-influencer ecosystem. With hundreds of crores being impounded and a ban imposed, the regulator has signaled a hard reset on unregistered market advice disguised as education. The impact of this case will likely shape how trading academies design their programs, how influencers communicate with audiences, and how retail investors approach paid financial content. Ultimately, SEBI’s decisive intervention underscores the importance of transparency, investor protection and accountability in a rapidly expanding digital finance environment.
Disclaimer: This article is for informational and educational purposes only. It is not financial, legal or investment advice. Readers should review official SEBI documents and consult qualified professionals before making any investment or trading decisions.
Primary source / order: SEBI — Interim Order in the matter of Avadhut Sathe Trading Academy Pvt. Ltd. . Additional reporting: Economic Times, Indian Express, Moneycontrol, NDTV.
Author: Team RA News