In short: SEBI has found that Avadhut Sathe Trading Academy Private Limited and its founder gave investment advice without registration, under the cover of stock market education. It has directed them to jointly refund ₹546.18 crore within five months of receiving the order. It has also barred them from the securities market and imposed monetary penalties.
What has SEBI ordered?
The Securities and Exchange Board of India (SEBI) passed a final order against the academy, its founder Avadhut Sathe and Gouri Sathe, the founder's wife. The order was passed under the Securities and Exchange Board of India Act, 1992. It follows an interim order and show cause notice dated 4 December 2025.
| Direction | Details |
|---|---|
| Refund | ₹546.18 crore, to be paid jointly by the academy and Avadhut Sathe within five months of receiving the order |
| Interest | ₹67.87 crore, to be deposited with SEBI's Investor Protection and Education Fund. It is calculated at 12% a year from 10 October 2025 to the date of the order |
| Market ban | Academy and Avadhut Sathe: two years, or until they comply with the refund directions, whichever is later. Gouri Sathe: six months |
| Penalties | ₹6 crore on the academy, ₹4 crore on Avadhut Sathe, ₹1.5 crore on Gouri Sathe |
What did SEBI find?
SEBI said the academy ran courses on stock market trading but, in practice, went well beyond teaching. According to the order, its sessions and WhatsApp groups included:
- recommendations on specific securities;
- suggested entry and exit levels and stop-loss levels;
- forecasts of how particular stocks would move; and
- live trading positions shared during programmes.
SEBI treated this as investment advisory and research analyst work. Anyone doing such work must be registered with SEBI, and SEBI found that neither the academy nor its directors were. The academy argued that its programmes were purely educational and that the fees were not income from advisory services. SEBI did not accept this.
SEBI also found that testimonials and promotional videos were circulated on social media. They highlighted profitable trades by participants, while SEBI's analysis showed that the trainers and participants were in net losses. Earlier, on 1 March 2024, SEBI had issued an administrative warning against misrepresentation and selective disclosure. The regulator said the practice continued after that warning.
SEBI's investigation covered 1 July 2017 to 9 October 2025. It also included a search and seizure operation on 20-21 August 2025, which was authorised by a Special Court. SEBI recorded that the academy collected about ₹601.37 crore from course participants. It also noted complaints that participants lost heavily despite promises of extraordinary returns, and that staff pushed some people to take loans to pay course fees.
What does this mean legally?
The case rests on two ideas. First, advising people on buying or selling securities for a fee is a regulated activity that needs registration. Calling it "education" does not change that if the content is effectively specific trading advice. Second, advertising that shows only winning trades while hiding overall losses can be treated as misleading and unfair practice in the securities market.
The refund direction is aimed at returning to participants the fees collected from them. The order does not, in the sources reviewed here, set out how individual participants should claim money. The academy and Avadhut Sathe have not been reported to have responded publicly to the final order.
Who is affected, and what should readers do?
- Past participants: Keep your fee receipts, enrolment records and messages. Watch for official communication about the refund process.
- Anyone considering a trading course: Check whether the person giving stock tips or recommendations is registered with SEBI. Be cautious about testimonials that show only profits.
- Anyone asked to borrow money for a course: Treat this as a warning sign, given what SEBI recorded about staff encouraging loans.
Frequently asked questions
How much must be refunded?
The academy and Avadhut Sathe must jointly refund ₹546.18 crore within five months of receiving the order. They must also deposit ₹67.87 crore as interest with SEBI's Investor Protection and Education Fund.
Is it illegal to teach stock market trading?
The order does not say that education itself is barred. SEBI's finding was that this academy's sessions included specific recommendations, price levels and live trading calls. SEBI considered these to be advisory services that needed registration.
Are the directors personally liable?
Yes, to the extent set out in the order. Avadhut Sathe is jointly responsible for the refund and has been fined ₹4 crore. Gouri Sathe has been barred for six months and fined ₹1.5 crore.
Sources
- SEBI: Order in the matter of Avadhut Sathe Trading Academy Private Limited
- ET Markets: Sebi orders Avadhut Sathe, academy to refund Rs 546 crore