The Securities and Exchange Board of India (SEBI) has issued an interim order and show cause notice to Avadhut Sathe Trading Academy and its proprietors for disgorging over ₹601 crore for carrying out unregistered investment advisory and research analyst activities, under the garb of education.
It has also impounded an amount of ₹546.2 crore, which are unlawful gains from the activities. The amount impounded has been directed to be deposited in separate account.
The company has been given 21 days to reply to the show cause notice.
The academy has also been directed to stop offering unregistered investment advisory and research analyst services, retrained from buying, selling or dealing in securities and to square off any open positions within 3 months of the order.
Based on complaints received from investors and course participants, SEBI’s investigations into the activities of the academy found that why carrying out education on stock markets, they were also providing stock-specific advice with assurance of returns.
It observed in the interim order that while the company was providing education, it was also providing stock specific exit, entry points to participants in live market, including placing orders according to their recommendations as well as informing them when stop losses were triggered.
“They are also asked to invest part of their capital in specific securities for better returns than FDs. None of these attributes would be seen in a case where pure educational activity is carried out,” the order said.
The academy had collected Rs 601.4 crore as fees during the period July 25, 2015 and October 9, 2025.
Out of these funds SEBI said it found evidence of unregistered activity in respect of eight of the courses that were offered to the public from January 1, 2020 to October 9, 2025 and the amount attributable to these courses were of the order of ₹546.2 crore.
The order also indicated that the amount collected should be refunded to the course participants and investors.
“It may be noted that this order does not seek to stop noticees from carrying out educational activity but to cease and desist with respect to violations that are narrated in this order,” the order pointed out.
If Noticees are willing to carry out educational activity there is no prohibition but they must abide by relevant regulations.
The Noticees cannot give securities specific advice whether directly or indirectly through their trades. They should not give any assurance of return. The Noticees should use only old data for education purpose, it added.
Published on December 5, 2025
