SEBI Finds Avadhut Sathe Trading Academy Misled Investors, Launches Preliminary Enquiry Against Founders

Mumbai: The EOW Joint Commissioner Nishith Mishra has approved registration of a Preliminary Enquiry (PE) against Avadhut Sathe Trading Academy Pvt. Ltd. (ASTAPL), its founder Avadhut Sathe, and his wife Gauri Sathe after serious findings by SEBI on misleading claims, unregistered advisory activities and largescale investor deception.

Misleading Promotional Tactics Highlighted by SEBI

SEBI’s order states that ASTAPL and Avadhut misled thousands of prospective students and investors by falsely claiming extraordinary returns from market trading. Promotional materials highlighted unrealistic profitability, including a widely circulated video featuring a 12-yearold child, suggesting that trading becomes “effortless” after ASTA training — a tactic SEBI said was intended to manipulate public perception and drive enrolments.

The regulator found that ASTAPL selectively showcased only profitable trades while concealing losses, creating a skewed image of success. SEBI also noted that the quality of teaching was far below what was marketed, and academy staff allegedly encouraged individuals to take loans to pay the course fees.

False Testimonials and Violation of PFUTP Regulations

SEBI’s investigation revealed widespread dissemination of false and exaggerated testimonials. Though ASTAPL promoted stories of participants earning “supernormal profits,” data showed many had suffered net losses. Despite prior warnings, ASTAPL continued circulating such misleading videos across social media platforms. SEBI concluded these actions violated PFUTP Regulation 4(2)(k) on fraudulent and unfair trade practices.

Unregistered Advisory Activities and Investor Losses

Beyond misrepresentation, SEBI found Avadhut and his academy were effectively providing stock recommendations, trade entries and exits, stop-loss instructions, and target guidance during live sessions — functioning as an unregistered investment advisory and research analyst service rather than an educational institute. Avadhut had publicly claimed he would create “one lakh crorepatis by 2031.” Instead, the academy reportedly incured losses exceeding Rs6 crore, while SEBI has impounded Rs546 crore in alleged illegal gains — one of the biggest actions against an influencer in India.

Avadhut, his academy, and Gauri will be probed for misrepresentation, unregistered advisory activities, and inducing investors through false promises.

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