The Securities and Exchange Board of India (SEBI), the regulator for the Indian stock market, has issued a major order against trading trainer Avadhut Sathe and his company, Avadhut Sathe Trading Academy Private Limited (ASTAPL). SEBI has directed them to refund ₹546.17 crore collected as fees from the relevant programs, pay ₹67.87 crore in interest, and deposit a total penalty of ₹11.5 crore. Furthermore, restrictions have been imposed on Avadhut Sathe and his academy, prohibiting them from engaging in stock market trading activities.
As per the final order dated October 23, 2026, SEBI has issued separate directions against the academy, Avadhut Sathe, and Gouri Avadhut Sathe.
| Action | Amount or Restriction |
|---|---|
| Refund of fees collected from the relevant programs | ₹546.17 crore |
| Interest to be deposited in SEBI’s Investor Protection and Education Fund | ₹67.87 crore |
| Penalty on the academy | ₹6 crore |
| Penalty on Avadhut Sathe | ₹4 crore |
| Penalty on Gouri Avadhut Sathe | ₹1.5 crore |
| Total penalty | ₹11.5 crore |
The academy and Avadhut Sathe have been granted a period of five months from the date of receipt of the order to deposit the relevant refund amount. The penalty must be deposited within 45 days of receiving the order.
Why did SEBI take this action
The core issue in SEBI’s investigation was that the activities of the academy and its founder were not limited solely to providing education on the stock market.According to the regulator, stock-specific trading calls and investment recommendations were provided through paid programs, live trading sessions, and WhatsApp groups. These included guidance on price levels for buying or selling stocks, entry and exit targets, stop-loss levels, and potential price movements.
SEBI found that the necessary registrations as an Investment Adviser (IA) and Research Analyst (RA) had not been obtained for these activities.The regulator also raised concerns regarding misleading claims about returns in promotional material and the selective showcasing of successful trades. According to SEBI, no proper process was followed to ensure that the recommendations provided were suitable for the individuals to whom they were directed.It is important to note that these are findings recorded in SEBI’s final order, rather than mere allegations circulating on social media.
SEBI has barred Avadhut Sathe and his academy from accessing the securities market for two years, or until they comply with directives regarding refunds—whichever occurs later.A six-month market ban has been imposed on Gouri Avadhut Sathe. In her case, SEBI cited a failure to fulfill supervisory responsibilities in her capacity as a director.
Furthermore, the academy and Avadhut Sathe have been directed to cease investment advisory and research activities that lack the necessary registration. Instructions have also been issued to restrict debits from the relevant bank accounts until a specified amount has been deposited. This does not mean that all restrictions will automatically be lifted simply by paying the fine; compliance with the other conditions stipulated in the order is also essential.
Who will receive the refund of ₹546.17 crore
According to the EBI, the academy and its founder had collected approximately ₹601.38 crore in fees since their inception. The investigation determined that an amount of ₹546.17 crore, linked to the relevant activities, should be refunded.The academy and its founder have been directed to publish notices regarding the refund process in newspapers within 30 days of receiving the order. These notices must outline the procedure for eligible individuals to file their claims
According to the regulator, the primary reason for SEBI’s action against Avadhut Sathe Trading Academy was the provision of investment advice and research-related activities without the necessary registration. The financial liabilities in this case include a directive to refund ₹546.17 crore, along with ₹67.87 crore in interest and a penalty of ₹11.5 crore..
Official Source: Read the SEBI Final Order against Avadhut Sathe Trading Academy Private Limited,
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FAQs
1. What is the penalty imposed by SEBI on Avadhut Sathe?
A penalty of ₹4 crore has been imposed on Avadhut Sathe. His academy has been fined ₹6 crore, and Gouri Avadhut Sathe has been fined ₹1.5 crore. The total penalty amounts to ₹11.5 crore.
2. To whom will the ₹546.17 crore be returned?
This amount represents the portion of funds collected as fees for the relevant programs that SEBI has mandated for a refund. The process for eligible individuals to file a claim will be communicated through an official notice.
3. Where can one read SEBI’s orders?
Relevant orders and official notifications can be found on SEBI’s official website, sebi.gov.in.