The Securities and Exchange Board of India (SEBI) took action against Indian stock markets and options trader, Avadhut Sathe, and his trading academy, for running an unregistered investment advisory and research analyst business.
The markets regulator, on Friday, directed Avadhut Sathe Trading Academy Private Limited (ASTAPL) and its founder to refund ₹546.17 crore collected from participants for providing unregistered investment advisory and research analyst services, along with interest of ₹67.87 crore.
Who is Avadhut Sathe?
Avadhut Sathe started trading and investment in 1991. As per his trading academy’s official website, Sathe regularly conducts seminars in stock market trading since February 2008.
His academy branches are located in multiple cities including Mumbai, Delhi, Navi Mumbai, Pune Hyderabad, Indore, Nashik, etc. The ASTAPL academy runs multiple programmes linked to stock market investment and trading, including eye opener sessions, Geo Program, SMM, PAPA, etc.
Why did SEBI order a refund by Avadhut Sathe Trading Academy?
SEBI has imposed a total penalty of ₹11.5 crore on the academy, Sathe and Gouri Avadhut Sathe for violations of securities market regulations. As per SEBI’s 171-page final order, Sathe has been fined ₹4 crore, while Gouri Avadhut Sathe has been penalised ₹1.5 crore.
SEBI has barred the academy and Avadhut Sathe from accessing the securities market for two years, or until they fulfil the direction to initiate all refunds.
The regulator found that the academy and Sathe provided investment advice and research recommendations through paid programmes, sessions and WhatsApp groups without obtaining the required registration.
It also found that misleading promotional representations about returns were used to attract participants and that investment advice was provided without assessing the suitability of recommendations for recipients.
Sathe had collected around ₹601.38 crore from course
The SEBI order stated that the academy and Sathe had collected around ₹601.38 crore from course participants since inception. However, based on the evidence examined, fees of ₹546.17 crore attributable to the relevant programmes were identified for disgorgement and refund.
Now, the markets regulator has directed the academy and Sathe to complete the refund in five months of receiving the order. SEBI has also directed Sathe to publish notices in newspapers within 30 days, explaining the procedure for investors to claim refunds.
