What Led to Avadhut Sathe's Ban from the Securities Market?
SEBI Takes Action Against Avadhut Sathe
Mumbai: Avadhut Sathe, a well-known finfluencer and market educator, has been prohibited from participating in the securities market. This decision comes after the Securities and Exchange Board of India (SEBI) accused him of operating an unregistered investment advisory service.
In a temporary ruling, SEBI instructed Sathe and his firm, Avadhut Sathe Trading Academy Private Limited (ASTAPL), to repay Rs 546.16 crore, which the agency labeled as illicit earnings.
This action was initiated following a search-and-seizure operation conducted at Sathe's residence and training facility in Karjat back in August.
The operation was prompted by claims that Sathe was providing stock-specific advice disguised as investor education.
SEBI stated that the operation was meticulously planned, with necessary court approvals and surveillance in place.
Sathe's personal story is often portrayed as one of overcoming adversity. He was raised in a Dadar chawl, earned an engineering degree, and later held IT positions in Singapore, Australia, and the United States.
He began his trading career in 1991 and returned to India in 2007 to dedicate himself to trading and education.
In 2008, he founded the Avadhut Sathe Training Academy (ASTA), which has since grown to 17 locations nationwide.
His training programs, which integrate technical analysis, trading psychology, yoga, and motivational talks, have attracted thousands of students.
His significant online presence, including a YouTube channel boasting nearly a million subscribers, has greatly contributed to his fame.
According to his website, a three-month residential course at his academy ranges from Rs 21,000 to Rs 1.7 lakh.
In 2023, he gained viral attention after a video of him dancing during a live trading session circulated widely on social media.
SEBI's investigation revealed that Sathe and ASTAPL amassed Rs 601.37 crore from over 3.37 lakh investors.
The regulator noted that Sathe provided actionable stock advice, trade levels, and specific recommendations, despite neither he nor his company being registered as an investment adviser or research analyst.
SEBI asserted that these actions exceeded standard educational training and directly encouraged investors to trade in specific stocks.
Additionally, it was alleged that the academy only highlighted profitable trades in its marketing, creating a deceptive impression of success.
The regulator emphasized the need for immediate action due to the extensive nature of operations and the potential for further investor harm.
The order also prohibits Sathe from utilizing live market data, providing any advisory services, or promoting trading outcomes until a final decision is made.