Avadhut Sathe Trading Academy Pvt. Ltd. (ASTAPL), its founder Avadhut Dinkar Sathe, and director Gouri Avadhut Sathe are the targets of an ex-parte interim order-cum-show cause notice from SEBI.
Academy Faces Regulatory Action
The notice alleges that the academy engaged in unregistered investment advisory and research analyst activities under the guise of stock market education.
Following a thorough investigation for FY24 and subsequent search and seizure operations carried out at the noticees’ locations on August 20–21, 2025, Whole Time Member Kamlesh C. Varshney issued the 125-page ruling.
According to the regulator’s ruling, the school continued to publish deceptive advertising materials that solely featured successful trades of course participants, even after receiving an Administrative Warning for deception and selective disclosures in March 2024.
Complaints Reveal Trading Misconduct
Several complainants claimed that the school had live market trading sessions where direct trade suggestions were made, and that the training packages promised exceptional profits but instead caused significant losses. Avadhut Sathe often disclosed particular stocks, goals, stop-loss levels, and directional views during live courses, according to SEBI’s examination of video recordings. He even showed his own MTM holdings. It was observed that participants acknowledged making transactions based on his recommendations.
The inquiry also showed that stock suggestions, option strategies, entry and exit levels, and index projections were shared via many secret WhatsApp groups that were set up for mentoring batches with payments of up to Rs 6.75 lakh.
SEBI Bars Market Access
The continuous inducement, the type of stock-specific instructions, and the amount of fees collected from participants established a prima facie violation of the SEBI Act, the Investment Advisers Regulations, the Research Analysts Regulations, and the PFUTP Regulations, according to SEBI, which stated that such behavior amounted to offering investment advice without registration.
SEBI has issued temporary orders prohibiting ASTAPL, Avadhut Sathe, and Gouri Avadhut Sathe from directly or indirectly entering the securities market in light of the findings. With the exception of liquidating their current holdings, they are prohibited from purchasing, selling, or dealing in securities until further instructions.
SEBI Freezes Illicit Funds
Additionally, the noticees are not allowed to perform stock-market training that includes live trading or stock-specific advice, provide any research analyst or investment advisory services, or send any stock-related messages via social media, WhatsApp groups, or other platforms. They have been instructed by SEBI to preserve any money they receive from investors in an escrow account and not to misuse or distribute it.
Additionally, SEBI has ordered the impounding of Rs 5,46,16,65,367 that were found to be prima facie illicit profits and mandated that the money be deposited in fixed deposits with a lien indicated in SEBI’s favor within 15 days.
SEBI Orders Detailed Reporting
Apart from transfers into the lien-marked deposits, banks are also not allowed to allow any debit transactions from the noticees’ accounts without SEBI’s approval. Additionally, within 15 days, they must provide information on all bank accounts, assets, liabilities, fee collections, and the full list of customers or course participants.
The noticees may be held jointly and severally accountable for the disgorgement of the fees obtained via the unregistered advising activities, according to the ruling. They have been requested to provide justification for why, within the next 21 days, such final directives—which include financial penalties and return obligations—should not be given. Until SEBI concludes its procedures and issues a final ruling, the interim directives will be in effect.
