SAT Grants Partial Relief to Avadhut Sathe, Orders ₹100 Crore Deposit
Tribunal Eases SEBI’s Restrictions but Upholds Concerns Over Unregistered Advisory Activities
Allegations of ₹546 Crore Unlawful Gains from Avadhut Sathe Trading Academy Under Scrutiny
By Our Legal Correspondent
New Delhi: January 23, 2026:
In a high-profile case that has drawn attention across India’s financial markets, the Securities Appellate Tribunal (SAT) has granted partial relief to stock market educator and trader Avadhut Sathe. The tribunal modified the Securities and Exchange Board of India (SEBI)’s interim order, which had impounded ₹546 crore and imposed sweeping restrictions on Sathe and his Avadhut Sathe Trading Academy (ASTA).
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While easing some restrictions, SAT directed Sathe and his academy to deposit ₹100 crore in a fixed deposit with a lien marked in favour of SEBI. This ruling highlight the growing scrutiny of financial influencers and unregistered advisory services in India’s capital markets.
Background of the Case
- The Entity: Avadhut Sathe Trading Academy (ASTA), founded by Avadhut Sathe, offered trading courses, mentorship programs, and market-linked services.
- SEBI’s Allegations: SEBI alleged that ASTA and its directors engaged in unregistered investment advisory and research analyst activities, violating SEBI’s IA (Investment Adviser) and RA (Research Analyst) regulations.
- Financial Scale: SEBI claimed that Sathe and his academy collected ₹601 crore through eight courses between 2020 and 2025, of which ₹546 crore was considered unlawful gains.
- Interim Order: In December 2025, SEBI froze Sathe’s bank and demat accounts, barred him from trading, and directed recovery of ₹546 crore.
Charges Against Avadhut Sathe
The charges against Sathe and his academy include:
- Unregistered Advisory Services: Offering investment advice and research analysis without SEBI registration.
- Unlawful Gains: Collecting hundreds of crores from training programs that allegedly crossed into advisory activities.
- Violation of SEBI Regulations: Breaching provisions of the SEBI Investment Adviser and Research Analyst rules.
- Misleading Practices: Promoting courses that allegedly influenced trading decisions of participants without regulatory oversight.
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SAT noted that SEBI had made out a prima facie case of regulatory violations, ruling out blanket relief at this stage.
SAT’s Observations and Relief
- Partial Relief: SAT modified SEBI’s order, allowing Sathe to access markets and operate accounts once the ₹100 crore deposit is made.
- Balance of Interests: The tribunal said it was not in dispute that Sathe’s academy collected ₹601 crore, but whether it constituted unlawful gain is yet to be decided.
- Next Steps: Sathe and his academy must file a detailed response within four weeks.
This relief provides breathing space for Sathe while keeping SEBI’s concerns intact.
Why This Case Matters
- Financial Influencers Under Scrutiny: The case highlights SEBI’s increasing focus on unregistered financial educators and influencers.
- Investor Protection: SEBI’s actions aim to protect retail investors from unregulated advisory practices.
- Legal Precedent: SAT’s ruling balances regulatory enforcement with procedural fairness, setting a precedent for similar cases.
- Market Integrity: Ensuring compliance with advisory regulations strengthens trust in India’s capital markets.
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Wider Implications
- For Financial Educators: The case serves as a warning that training academies must clearly separate education from advisory services.
- For Investors: Retail investors should verify whether advisors are SEBI-registered before acting on their recommendations.
- For Regulators: SEBI may intensify monitoring of online courses, mentorship programs, and influencer-driven trading communities.
- For Courts: SAT’s ruling shows judicial willingness to balance strict enforcement with fairness.
Conclusion
The SAT’s decision in the Avadhut Sathe case is a landmark in India’s financial regulatory landscape. By directing a ₹100 crore deposit while easing restrictions, the tribunal has struck a balance between protecting investors and ensuring due process.
The charges against Sathe—unregistered advisory services and unlawful gains—remain under investigation, and the outcome will depend on SEBI’s detailed findings and subsequent hearings. For now, the case underscores the importance of compliance, transparency, and investor protection in India’s fast-growing financial markets.
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