India’s financial markets regulator has received strong backing from the Securities Appellate Tribunal (SAT) in its action against Avadhut Sathe and his Avadhut Sathe Trading Academy (ASTA). The tribunal has allowed SEBI’s investigation to continue, while reducing the amount of money the academy must deposit at this interim stage.
SEBI had earlier ordered ASTA to deposit ₹546 crore, which it claimed was the amount earned through illegal activities. However, SAT modified this requirement and directed the academy to deposit ₹100 crore instead, to be kept in a fixed account with restrictions. The tribunal also barred the academy from selling or transferring its fixed assets while the case is ongoing.
SEBI’s action stems from allegations made in its December order. According to the regulator, Sathe and his academy were not just teaching stock markets but were providing unregistered investment advisory and research analyst services. SEBI claimed that live market data was used during classes, and participants were given specific stock recommendations along with target prices and stop-loss levels.
The regulator further alleged that the academy collected more than ₹601 crore in fees from around 3.37 lakh participants. It also claimed that profits and losses were misrepresented on YouTube and other platforms to attract students and build credibility.
ASTA challenged SEBI’s interim order before SAT, arguing that its work was purely educational and not professional investment advice. The academy also said SEBI acted without giving it a proper hearing, which it claimed violated its constitutional rights. It added that depositing such a large amount was nearly impossible since its bank accounts were already frozen and those involved had been restricted from participating in stock markets.
After reviewing the matter, the tribunal said that SEBI had made a “prima facie” case, meaning there is enough initial evidence to justify continuing the regulatory process. SAT pointed to materials such as YouTube testimonials showing trading profits, the continued use of live market data in classes, and paid WhatsApp groups where stock tips were shared, even after earlier warnings from SEBI.
While the tribunal did not give a final judgment on whether the academy is guilty, it said these facts were sufficient to support SEBI’s interim intervention. At the same time, it reduced the deposit amount to balance regulatory action with practical difficulty.
SAT has directed ASTA to submit its reply to SEBI’s show-cause notice within four weeks. SEBI will then examine the response and pass a final order after completing the process.
The case is being closely watched as it reflects a broader crackdown on financial educators and social media influencers who may be crossing the line between teaching and regulated financial advice. With retail participation in stock markets rising rapidly, regulators are increasingly focused on protecting small investors from misleading claims and unregistered advisory services.
This decision sends a clear signal that while financial education is allowed, offering direct trading advice without registration can attract serious regulatory consequences.