Sebi bans top finfluencer Avadhut Sathe, seizes ₹546 crore in toughest crackdown yet

In its most decisive strike yet against India’s rapidly growing finfluencer economy, the Securities and Exchange Board of India (Sebi) has barred well-known market trainer Avadhut Sathe and his Avadhut Sathe Trading Academy (ASTA) from the securities market, while ordering the impounding of a staggering ₹546 crore allegedly collected through unregistered investment advisory activities.

The order, issued on December 4, marks a significant escalation in Sebi’s scrutiny of online trading trainers—many of whom promote themselves as educators but allegedly function as de facto stock advisers without regulatory approval.

Complaints spark probe into live trade calls

The investigation began after multiple complaints alleged that Sathe’s programmes were not limited to training modules, but included live trading sessions, buy-and-sell calls and actionable guidance during market hours.

Sebi reviewed videos, WhatsApp chat records, private group messages, promotional material, pricing structures and testimonies of trainees. In one instance cited in the order, Sathe reportedly directed participants to take a specific position in Bank Nifty futures with exact entry, stop-loss and target levels — conduct the regulator said “goes far beyond education.”

“The activities of the noticees were not limited to general training. They were providing specific advice with entry and exit points. Such conduct is characteristic of an investment adviser, not an educator,” Sebi noted.

‘False sense of guaranteed returns’

The regulator also criticised ASTA’s marketing pitch, which showcased screenshots of profitable trades, promised “life-changing strategies” and created what Sebi described as a misleading perception of guaranteed success.

Selective disclosure of profits while concealing losses, Sebi said, was intended to entice retail investors into expensive programmes costing up to ₹6.75 lakh per participant.

Despite receiving a formal warning earlier this year, Sathe allegedly continued these practices—only shifting them into more private digital spaces to avoid oversight.

The regulator concluded that the training fees constituted payment for “real-time actionable advice,” making the operation functionally indistinguishable from paid advisory services.

Tight restrictions imposed; bank accounts frozen

Under the order, Avadhut Sathe, ASTA and director Gouri Sathe are prohibited from:

• Buying or selling securities
• Running advisory, research or portfolio-linked services
• Conducting live trading sessions involving recommendations or stock calls

Banks have been directed to freeze their accounts until ₹546 crore is secured in fixed deposits under Sebi’s lien.

The noticees must also provide exhaustive financial disclosures, including asset statements, bank records, GST filings and a list of every paying customer.

Landmark case signals new compliance threshold for finfluencers

This is the largest financial penalty ever imposed on an Indian finfluencer, and a watershed moment for the booming but loosely regulated space.

Sebi warned the conduct posed a “serious risk” to market integrity and investor interests, given Sathe’s wide following and the trust placed by retail traders who believed his methods were “fail-proof.”

The order sets a clear compliance precedent: any educator who provides stock-specific guidance, trade execution cues or real-time calls may now be treated as an unregistered investment adviser.

For India’s finfluencing ecosystem, largely built on aggressive promises and high-volatility trading, the message is unambiguous — regulation has arrived.