In one of its toughest crackdowns yet on India’s booming “finfluencer” industry, the Securities and Exchange Board of India (SEBI) has banned financial influencer Avadhut Sathe and his company, Avadhut Sathe Trading Academy Pvt. Ltd. (ASTAPL), from the securities market and ordered them to refund Rs 546.16 crore collected from lakhs of unsuspecting retail investors.
The move marks a turning point in India’s fight against unregistered investment advisors who operate under the guise of “financial education”.
SEBI’s 125-Page Order Exposes a Deep Web of Misleading Practices
According to SEBI, Sathe and his academy sold trading courses, but what participants actually received were stock tips, buy/sell calls and strategies directly influencing their trading decisions, all without mandatory SEBI registration.
What SEBI Found:
●Stock-specific recommendations allegedly passed off as “education”
●Live sessions showing buy/sell calls
●Selective showcasing of profitable trades
●Losses allegedly hidden from participants
●Marketing built around exaggerated success stories
●Massive enrolments despite zero advisory or analyst licence
The regulator made it clear: education cannot include stock recommendations, and no one can offer advisory services without proper registration.
Lakhs of Investors, Hundreds of Crores Collected
SEBI revealed a staggering scale of operations:
●3.37 lakh investors enrolled
●Rs 601.37 crore collected
●Rs 546.16 crore deemed illegal gains to be refunded
This is one of the largest refund orders ever issued by SEBI against a finfluencer-led business.
Misleading Promotional Tactics: The Heart of the Case
SEBI’s investigation uncovered a pattern:
●Only profitable trades showcased
●Loss-making trades allegedly suppressed
●High-return narratives created through webinars and social media
●Emotional appeal and aggressive selling used to attract beginners
From Instagram reels to live webinars, SEBI found a “consistent strategy to influence investment decisions indirectly”.
SEBI Slams the Door Shut: Strict Directions Issued
In an order signed by Whole-Time Member Kamlesh Chandra Varshney, SEBI issued five major directives:
1. Immediate halt to all unregistered advisory activities
2. Ban on offering research analyst services
3. Prohibition on using live market data to give trading demonstrations
4. No advertising of profits or success stories
5. Mandatory refund of ₹546.16 crore to investors
SEBI called the move essential to protect small investors from misleading hope-based marketing.
Experts Say: This Will Reshape India’s Finfluencer Ecosystem
Market experts believe this case is a watershed moment:
●The finfluencer economy grew rapidly without proper oversight
●Many trainers blur the line between education and advice
●Beginners often fall for quick-profit promises
●Social media has become a hotspot for unregulated stock tips
“This is the strongest message SEBI could have sent,” one analyst said. “If you influence trades, you must be registered. No exceptions.”
What Investors Must Learn from This Case
This crackdown highlights vital reminders for retail traders:
●Always check SEBI registration
●Avoid platforms that guarantee profits
●Trading courses should not include direct stock tips
●Do not trust influencers displaying only their winning trades
●If it sounds too good to be true, it probably is
Investor protection remains SEBI’s top priority as more first-time traders enter the markets.
A Historic Action, A Strong Warning
SEBI’s action against Avadhut Sathe is not just a penalty—it is a warning to the entire finfluencer ecosystem. As millions of Indians turn to social media for trading guidance, regulators are stepping in to ensure transparency, accountability, and investor safety.
This case may well become the defining moment that reshapes how India consumes financial advice online.
