Sebi orders Avadhut Sathe Trading Academy to refund ₹546 crore and levies ₹11.5 crore fine
The market watchdog has barred the options trainer from Indian exchanges for running unregistered advisory services under the guise of trading classes.
India's capital markets regulator has ordered Avadhut Sathe Trading Academy Pvt. Ltd and its founder to refund ₹546.17 crore to course participants, slapped an ₹11.5 crore penalty on them, and barred them from trading in securities.
The final order issued by the Securities and Exchange Board of India (Sebi) marks one of the regulator's steepest enforcement actions against unregistered market trainers, reinforcing rules designed to safeguard retail investors in fast-growing derivatives markets.
Sebi ruled that the academy and its founder, Avadhut Dinkar Sathe, operated well outside the boundaries of investor education. Instead, the firm delivered unregistered investment advice and research analyst services, issuing live buy and sell calls, specific price targets, and stop-loss levels during streaming workshops and through private WhatsApp groups.
Penalties and market bans
Sebi divided the ₹11.5 crore penalty across the company and two directors, while issuing tiered market bans.
| Person or entity | Fine | Market ban |
|---|---|---|
| Avadhut Sathe Trading Academy | ₹6.0 crore | 2 years (or until refund completed) |
| Avadhut Dinkar Sathe | ₹4.0 crore | 2 years (or until refund completed) |
| Gouri Avadhut Sathe | ₹1.5 crore | 6 months |
The regulator noted that Gouri Sathe did not personally devise the operation, give trading calls, or collect wrongful gains, resulting in a lighter debarment.
Beyond the principal refund of ₹546.17 crore, the order requires the firm and its founder to deposit ₹67.87 crore in interest into Sebi's Investor Protection and Education Fund.
How the refund will work
Sebi has set out strict compliance rules to make sure the money reaches participants:
- Public notices: The academy and Sathe must publish notices within 30 days of receiving the order in three newspapers: one English daily, one Hindi national paper, and one local-language daily.
- Verifiable payments: All repayments must go directly through traceable electronic banking channels.
- Independent oversight: An independent, peer-reviewed chartered accountant must audit and certify the entire refund process.
- Asset freezes: Sebi placed debit restrictions on their bank accounts and blocked the sale of assets, allowing disposals only where strictly necessary to pay back participants.
Unregistered advice and misleading claims
Sebi opened its formal investigation following an interim order issued on 5 December 2025. The inquiry examined the academy's promotional literature, which heavily publicised student testimonials showing outsized profits from options trading.
When officials reviewed actual trading data, they discovered clients suffered net trading losses. Sebi had previously warned the academy about its misleading marketing in March 2024, but the firm continued making exaggerated performance claims.
The enforcement action underscores the regulator's push to keep retail trading transparent and hold commercial training operations accountable when they dispense specific, unregistered stock tips.
Key numbers
| What | Figure | Source |
|---|---|---|
| Total refund ordered | ₹546.17 crore | Sebi final order |
| Total penalty levied | ₹11.5 crore | Sebi final order |
| Interest payable to Sebi fund | ₹67.87 crore | Sebi final order |
| Trading academy penalty | ₹6 crore | Sebi final order |
| Avadhut Sathe penalty | ₹4 crore | Sebi final order |
| Gouri Sathe penalty | ₹1.5 crore | Sebi final order |
In this story
| Name | Role in the story |
|---|---|
| Avadhut Dinkar Sathe | Founder of the academy, barred from the market and fined ₹4 crore. |
| Securities and Exchange Board of India | The market regulator that issued the penalty and refund orders. |
| Avadhut Sathe Trading Academy Pvt. Ltd | The trading education company penalised and ordered to refund course fees. |
