The Securities and Exchange Board of India (Sebi) has imposed penalties totalling ₹11.5 crore on Avadhut Sathe Trading Academy Pvt. Ltd (ASTAPL) and its directors, and barred them from accessing the securities markets for periods of up to two years for providing unregistered investment advisory and research analyst activities.
In a final order issued on Friday, the market regulator directed ASTAPL and its founder Avadhut Dinkar Sathe to disgorge and refund ₹546.17 crore to eligible investors and participants who paid for its unregistered services. It has also ordered a deposit of ₹67.87 crore in interest with Sebi’s Investor Protection and Education Fund.
Penalty
Sebi imposed a penalty of ₹6 crore on ASTAPL, ₹4 crore on Sathe and ₹1.5 crore on Gouri Avadhut Sathe, another director.
Sebi also prohibited ASTAPL and Avadhut Sathe from accessing or dealing in the securities markets, directly or indirectly, for two years or until they comply with the refund direction, whichever is later. Gouri Sathe has been barred for six months.
Sebi had issued an interim order on the matter on 5 December 2025.
The regulator’s action follows its findings that the academy’s activities went beyond financial education and included investment advice and research-related services without the required registrations. The order cites recommendations on specific securities, including buy and sell calls, price targets and stop-loss levels, delivered through live sessions and WhatsApp communications.
The order directs ASTAPL and Sathe to publish refund notices within 30 days of receiving it in two national newspapers—one English and one Hindi—and a local-language newspaper. The notices must explain how eligible claimants can seek refunds. Payments must be made through electronic banking channels, with an audit trail, and the process must be independently certified by a peer-reviewed chartered accountant.
Sebi has also restricted the sale of assets by ASTAPL and Sathe, except where necessary to execute refunds, and ordered debit restrictions on their bank accounts until the required transfers are made.
Sebi also objected to promotional material and testimonials that highlighted unusually high trading profits. Its examination of trading data found losses, including net trading losses, and the regulator said misleading promotional claims continued even after it issued a warning in March 2024.
Gouri Sathe’s liability was treated separately: Sebi said that it had not found she personally provided the services, devised the arrangement or obtained wrongful gains.
