The Securities and Exchange Board of India (SEBI) has directed Avadhut Sathe Trading Academy Private Limited (ASTPL) and founder Avadhut Sathe to refund ₹546.17 crore collected through unregistered investment advisory and research analyst activities.
In its final order issued on Friday, the regulator also directed them to deposit ₹67.87 crore in interest with the Investor Protection and Education Fund (IPEF).
SEBI imposed penalties totalling ₹11.5 crore on the academy, its founder and director Gouri Avadhut Sathe.
SEBI Imposes Market Ban And Sets Refund Deadline
The academy faces a ₹6 crore penalty, while Avadhut Sathe and Gouri Sathe must pay ₹4 crore and ₹1.5 crore, respectively, within 45 days of receiving the order.
ASTPL and its founder have been barred from securities markets for two years or until they comply with the refund direction, whichever is later.
Gouri Sathe faces a six-month market ban.
The academy and its founder must deposit ₹546.17 crore into a dedicated refund account within five months.
They must also publish refund claim procedures in English, Hindi and a widely circulated regional-language newspaper within 30 days.
Any unclaimed balance must be placed in a SEBI escrow account for one year before the remaining amount is transferred to IPEF.
SEBI has restricted debits from the academy's and founder's bank accounts and prohibited asset sales, except those necessary for refunds.
Investigation Finds Unregistered Stock Advisory Activities
SEBI's investigation covered July 1, 2017, to Oct 9, 2025.
According to the regulator, the academy and its founder went beyond stock-market education by providing security-specific trading recommendations without mandatory registrations.
These allegedly included trading calls, entry and exit targets, stop-loss levels and forecasts of price movements.
SEBI had also conducted a search at the academy's Karjat premises in August last year.
The regulator directed all three parties to discontinue unregistered investment advisory and research analyst services.
They were additionally prohibited from using live or historical market data to provide directional indications about future movements in specific securities.
The order establishes refund obligations alongside financial penalties and restrictions on market participation.
