MediaNama’s Take
The Securities and Exchange Board of India’s (SEBI) crackdown on fake finfluencer Avadhut Sathe is yet another wake-up call, even for those who did not buy or invest in his courses. His firm, Avadhut Sathe Trading Private Limited (ASTAPL), was running live trading rooms where participants received recommendations on specific stocks, effectively making them unwilling participants in market manipulation.
Sathe sold paid courses to several individuals and asked them to invest part of their capital in specific stocks, assuring them of higher returns than fixed deposits (FDs). He gave buy and sell recommendations, resistance levels, stop-loss points, trading strategies, and expected intraday movements in WhatsApp groups. Overall, Sathe collected Rs 601 crore in fees from investors who took his courses, out of which Rs 546 crore were prima facie deemed “unlawful gains.”
What’s more alarming is that students appeared to follow Sathe’s cues instantly, without verifying the facts. During one trading session, Sathe introduced a homemaker to his students, claiming she had earned over Rs 1 crore trading Nifty Bank options. However, SEBI said she had only made Rs 4.2 lakh in that period.
The Sathe episode further exposes gaps in regulation, with finfluencers devising new ways to abuse the market while the law plays catch-up. Social media platforms are awash with rogue finfluencers pushing risky investments to youngsters. While SEBI’s action against Sathe is well-intentioned, singling out a few bad actors is not enough. What we need is the implementation of a clear, comprehensive policy.
What’s the News?
Last week, SEBI barred finfluencer Avadhut Sathe and his firm ASTAPL from dealing in the securities market and impounded ill-gotten gains worth over Rs 546 crore.
In its interim order, the regulator observed that Sathe and his firm were not registered as investment advisers or research analysts. Despite this, they provided investment advisory and research analyst services under the guise of stock market education to a large number of investors.
Between July 25, 2015, and October 9, 2025, the company collected over Rs 601 crore in fees for its courses. Out of this, SEBI found evidence of unregistered activity in eight courses offered to the public between January 1, 2020, and October 9, 2025. The unlawful gains allegedly earned through these courses amounted to more than Rs 546 crore.
How Avadhut Sathe Ran Into the Crosshairs of SEBI
A SEBI investigation into the activities of ASTAPL and Sathe during the financial year 2023–24 revealed that the academy was publishing selective profitable trades of investors, claiming that participants who took its course consistently made profits and that its trainers were experts in the stock market.
However, SEBI’s analysis showed that all such investors were in net losses. The regulator issued a warning to the company against misrepresentation and selective disclosures.
Despite repeated warnings, ASTAPL continued to post misleading videos. SEBI subsequently received several complaints from people who had subscribed to various programs offered by the company. They alleged that while the company promised extraordinary returns, many course participants incurred substantial losses.
A preliminary investigation revealed that ASTAPL was providing unregistered investment advisory and research analyst services under the garb of stock market education, often using live market trading data during sessions.
Additionally, the regulator observed that Sathe had collected large amounts of fees from unsuspecting investors and that his firm was spreading misleading information and advertisements through social media, enticing users with promises of unrealistic returns.
What the Investigation Into Sathe’s Modus Operandi Reveals?
In August 2025, SEBI conducted search and seizure operations at premises linked to ASTAPL and the residences of Sathe and his spouse, Gouri. The action followed complaints alleging that Sathe misled subscribers with educational programs that pushed them to buy certain stocks, while he also shared his own trading positions and displayed mark-to-market gains, encouraging participants to follow similar trades.
SEBI also found that the academy falsely claimed its course participants earned sky-high returns, misleading prospective investors with exaggerated profitability claims.
The regulator flagged a promotional video featuring a 12-year-old child, falsely suggesting that trading became effortless after attending ASTAPL’s training sessions, an attempt to manipulate perceptions and drive sign-ups.
Several individuals were reportedly lured into taking loans to pay course fees, which ranged from Rs 500 to Rs 6.75 lakh. Participants were also asked to record their trades on the company’s website, raising concerns about potential misuse of their trading data.
Sathe and his firm frequently used live market data in training sessions and conducted live trading demonstrations, effectively giving out specific stock guidance without permission, violating provisions of the SEBI Act, 1992; Investment Advisers Regulations, 2013; Research Analyst Regulations, 2014; and Prohibition of Unfair Trade Practices Regulations, 2003.
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What the SEBI Order Says
The market watchdog has directed Sathe and his firm to cease and desist from offering unregistered investment advisory and research analyst services. They have also been restrained from promoting themselves as investment advisers or research analysts.
ASTAPL and Sathe have been barred from buying, selling, or dealing in securities, directly or indirectly, until further notice. SEBI has given them three months to square off any open positions in exchange-traded derivative contracts.
They are prohibited from collecting any money or fees from existing course participants for investment advisory or research analyst services. Sathe has been ordered to open FD accounts within 15 days of the order, with lien marked in favour of SEBI. These FDs represent the unlawful gains and cannot be released without SEBI’s prior permission.
ASTAPL and Sathe have also been directed to immediately take down all websites, advertisements, representations, literature, documents, brochures, videos, publications, and any communication pertaining to their unregistered activities.
Why this Matters
The order against Sathe is part of SEBI’s broader crackdown on illegal finfluencers. Earlier this year, the regulator banned Asmita Patel and five of her associates, seizing over Rs 53 crore in illicit profits. Patel had been providing stock market recommendations through private Telegram channels, Zoom meetings, and educational courses, without mandatory registration.
The case underscores how acting on social media tips without verification can land investors in trouble. There have been countless such examples. During the 2022 Vauld crisis, several finfluencers, including Ankur Warikoo, P.R Sundar and Akshat Shrivastava, promoted it as a crypto FD in their videos. When the platform later suspended all activities, investors were left stranded.
The Gensol Engineering episode last year further shows how the menace of unregistered advisors persists. Finfluencers like Aditya Joshi and Prashant Mishra promoted the stock after its rapid rise, only to be blindsided when corporate governance issues emerged. Investors suffered heavy losses by following non-credible advice.
Another concern is the lack of transparency around financial affiliations. A recent CFA Institute survey revealed that 59% of Indian finfluencers had one or more brand sponsorships, yet 63% failed to disclose these affiliations. This lack of transparency makes it difficult to distinguish credible advice from paid promotions.
The survey also found that of the 51 finfluencers examined, only 2% were SEBI-registered, yet 33% openly recommended stocks to buy, sell, or hold, highlighting a major gap between those offering financial advice and those authorised to do so.
To curb the menace of unregistered finfluencers, SEBI amended its regulations in August 2024, barring SEBI-regulated persons and entities from having direct or indirect associations with individuals providing financial advice on securities without regulatory authorisation.
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