Famed Stock Market Trainer Avadhut Sathe Faces ₹546 Crore Penalty for Unregistered Activities

Image Source: Internet

The Securities and Exchange Board of India (SEBI) has issued a massive crackdown on Avadhut Sathe, a well-known stock market trainer, and his company, Avadhut Sathe Trading Academy Pvt Ltd (ASTAPL). The regulator has banned Sathe and his company from the securities market and ordered them to return a staggering ₹546 crore, which they allegedly earned through unregistered investment advisory activities. Sathe, a prominent figure in the trading circles, has been running his academy since 2008, conducting seminars, workshops, and mentorship programs for over 16 years. However, SEBI claims that Sathe's academy and associated entities were involved in deceptive marketing practices, pushing course participants to trade in specific stocks under the guise of education. The regulator also alleged that Sathe and ASTAPL collected ₹601.37 crore from over 3.37 lakh people without being registered investment advisors or research analysts. SEBI's investigation, which began in 2023, revealed that Sathe's academy showcased only profitable trades to create an illusion of guaranteed high returns. The regulator also found that Sathe and his company used live market data and trade performance to lure new students. The SEBI order has come as a major blow to Sathe, who now faces the biggest financial penalty ever imposed on an individual market trainer in India. The regulator has directed Sathe and ASTAPL to cease all unregistered investment advisory activities, stop projecting past profits or participant success stories, and refrain from using live market data during training. The SEBI's action is a stern warning to all unregistered investment advisors and market trainers in India, emphasizing the need for urgent action to prevent further public harm. This case highlights the importance of regulatory oversight and the need for market participants to operate within the bounds of the law.