Avadhut Sathe Barred by SEBI; INR 546 Crore Impounded in Biggest Finfluencer Crackdown Yet

SEBI has taken its most severe action to date against a financial influencer, ordering the impoundment of INR 546 crore and barring Avadhut Sathe, the founder of the Avadhut Sathe Trading Academy (ASTA), from the securities market. According to the authority, this money was obtained by deceiving thousands of ordinary investors through unlicensed investment advisory activities. The decision, which was issued on December 4, represents a turning point in SEBI's efforts to clean up the finfluencer ecosystem, where a number of online trainers pretend to provide education but actually provide live trading calls, advice, and particular stock predictions without a regulatory licence.

What Triggered SEBI to Intervene?

Following accusations that Sathe's academy was providing buy and sell calls during live market sessions in addition to trading training, SEBI launched a probe. After the investigation began, SEBI examined participant testimony, payment mechanisms, social media content, WhatsApp messages, and recordings.

In one instance that SEBI highlighted, Sathe was seen leading a live trading session in which he gave participants instructions to enter a Bank Nifty futures transaction at a specific price, complete with the target and stop-loss. SEBI pointed out that this was a direct investment proposal that went well beyond instruction. According to the ruling, the noticees' actions were not restricted to general training.

With regard to entry and exit points, they were offering precise guidance. A financial adviser, not a teacher, would act in such a manner. According to SEBI, the academy's "counselling batches" were an organised method by which Sathe and his staff instructed participants on actual trades, frequently using secret WhatsApp groups to provide immediate guidance. Hundreds of people paid exorbitant amounts to join some of these groups.

Stringent Action by SEBI

Until further directives, SEBI has prohibited director Gouri Sathe, ASTA, and Avadhut Sathe from participating in the securities market. They are unable to engage in any advising activities, purchase or sell securities, or lead live trading sessions that include stock recommendations.

Until INR 546 crore is put into fixed deposits that are acceptable to Sebi, banks have been told to freeze customer accounts. SEBI further stated that the noticees are prohibited from requesting or engaging in any kind of activity pertaining to research, investment advisory, or portfolio management, including real-time call-based training modules. Complete financial documents, asset details, bank statements, GST filings, and a list of all customers who have paid for their programmes must also be shared by the noticees.

This is the biggest amount ever seized from an Indian influencer. It represents a firm stance taken by SEBI, which is concerned that unchecked advice from social media influencers could seriously hurt ordinary traders' finances. Sathe's influence was "widespread", according to SEBI, and thousands of participants paid substantial sums of money in exchange for assurances of better trading performance, making the actions essential. Many clients thought Sathe's strategies were "fail-proof", according to the regulator, demonstrating how much they trusted his market calls.