SEBI Mandates Avadhut Sathe Trading Academy to Refund ₹546 Crore
The Securities and Exchange Board of India orders a substantial refund and imposes penalties on Avadhut Sathe Trading Academy for unregistered advisory services.
SEBI orders Avadhut Sathe Trading Academy to refund ₹546.17 crore to investors.
A total penalty of ₹11.5 crore has been imposed on the academy and its founders.
The academy's bank accounts have been frozen pending compliance with the refund order.
The Securities and Exchange Board of India (SEBI) has directed Avadhut Sathe Trading Academy Private Limited (ASTPL) and its founder, Avadhut Sathe, to refund ₹546.17 crore collected from investors for unregistered investment advisory and research activities. This decision, made in a final order on Friday, also requires the academy to deposit ₹67.87 crore in interest with the Investor Protection and Education Fund (IPEF).
In addition to the refund, SEBI has barred both the academy and Avadhut Sathe from participating in securities markets for two years or until they fulfill the refund requirement. Gouri Avadhut Sathe, a director at the academy, faces a six-month market ban. The penalties imposed include ₹6 crore on the academy, ₹4 crore on Avadhut Sathe, and ₹1.5 crore on Gouri Sathe, all payable within 45 days.
The academy is required to create a dedicated bank account for the refund process and must publish notices in both English and Hindi newspapers, as well as a local-language publication, detailing how eligible investors can claim their refunds. Any remaining balance after the refund process must be deposited with SEBI and held in an escrow account for one year, with unclaimed amounts transferred to the IPEF thereafter.
SEBI's investigation, which spanned from July 1, 2017, to October 9, 2025, revealed that the academy provided stock-specific advice and trading calls without the necessary registrations. The regulator also noted that the academy's promotional materials misleadingly showcased profitable trades while ignoring losses. Despite previous warnings about misleading representations, the academy continued its operations.
Looking ahead, SEBI's order emphasizes the need for regulatory compliance in investment advisory services. The academy and its founders are expected to take immediate steps to comply with the refund order and address the penalties imposed. SEBI's actions reflect a broader commitment to protecting investors and ensuring transparency in the financial advisory sector.
