'Victim of regulatory vacuum': What Avadhut Sathe Trading Academy says on SEBI interim order

Avadhut Sathe Trading Academy called itself a “victim of regulatory vacuum” in its response to SEBI’s interim order, asserting that it had “never accrued or garnished any unlawful gains from advisory services or research analysts services.”

The institute, run by finfluencer Avadhut Sathe, said it did not issue stock analysis or recommendations, investment advice or research, nor execute transactions on behalf of students. It maintained that all interactions, references and examples used in its sessions were solely for educational and conceptual clarity and were not to be construed as advice or recommendations.

The academy also insisted it could not be classified as a “finfluencer”, arguing that it did not monetise its YouTube or social-media channels, including Instagram and Telegram. It said it operated exclusively as a training institution offering programmes aimed at skill building and decision-making in financial markets.

“We are a victim of regulatory vacuum and do not fall under the category of Research Analyst or Investment Adviser. We do not issue stock analysis or recommendations, investment advice or research or execute transactions on behalf of our students,” the institute reiterated.

The response followed SEBI’s ex-parte interim order-cum-show cause notice against Avadhut Dinkar Sathe, Avadhut Sathe Trading Academy (ASTAPL) and Gouri Avadhut Sathe. SEBI ordered the impounding of Rs 546.16 crore in prima facie unlawful gains and directed that the amount be placed in fixed deposits within 15 days with a lien in favour of the regulator.

SEBI alleged that the Sathe-promoted academy circulated videos falsely advertising that course participants earned supernormal profits. Even after receiving an administrative warning, the regulator said the academy continued to publish false and misleading claims.

According to SEBI, an examination of profit and loss statements of 186 course participants showed that 121, or about 65 per cent, incurred losses in the six-month period after completing the course. This, SEBI said, contradicted the academy’s broader messaging that its programmes helped participants earn exceptional returns. The regulator added that the videos containing “bogus claims” appeared to have been designed to induce investors to enrol.

SEBI further noted that Sathe, as founder, promoter, director and main trainer of ASTAPL and sole proprietor of Avadhut Sathe Trading Academy, was directly responsible for unregistered investment advisory activities. It alleged that Gouri Avadhut Sathe was actively involved in daily operations, citing recurring payments received from ASTAPL. Chats in WhatsApp groups and stock analysis shared using live market data during courses were attributed to Sathe himself.

SEBI imposed interim directions restraining ASTAPL, Avadhut Sathe and Gouri Avadhut Sathe from accessing the securities market, directly or indirectly. They were barred from buying, selling or dealing in securities until further orders, except to liquidate existing holdings. The noticees were also prohibited from offering investment advisory or research analyst services, conducting stock-market training involving live trading or stock-specific guidance, or issuing stock-related communication through social media or messaging platforms. SEBI additionally directed them not to divert or dissipate investor funds and to maintain such amounts in an escrow account.