India’s market regulator has ordered Avadhut Sathe Trading Academy Pvt. Ltd. and founder Avadhut Dinkar Sathe to return ₹546.17 crore to eligible course participants after finding that paid offerings crossed into regulated stock advice.
In a final order dated Oct. 23, the Securities and Exchange Board of India (SEBI) barred the academy and Sathe from securities markets for two years or until they satisfy the refund direction, whichever comes later. SEBI also ordered them to deposit ₹67.87 crore in interest with its Investor Protection and Education Fund.
SEBI said the business collected about ₹601.38 crore from course participants since it began; it attributed ₹546.17 crore to programs covered by its findings and ordered that amount refunded.
The regulator said paid courses, live sessions and WhatsApp communications included recommendations on specific stocks, buy and sell calls, target prices and stop-loss levels. It classified the activity as investment-advisory and research services that require registration. The order also cited promotional material featuring high trading profits and findings from trading data. It followed an earlier interim order in the same matter.
The academy and Sathe must put the refund amount in a designated bank account within five months of receiving the order. Within 30 days of receipt, they must publish instructions for refund claims in national newspapers in English and Hindi and a local-language newspaper. SEBI requires payments through banking channels with an audit trail and independent certification by a peer-reviewed chartered accountant.
SEBI fined the academy ₹6 crore, Sathe ₹4 crore and director Gouri Avadhut Sathe ₹1.5 crore. Gouri Sathe was also barred from the markets for six months. SEBI held Gouri Sathe responsible for inadequate oversight as a director, while saying it had not found that she directly delivered the services, designed the arrangement or received improper gains.
SEBI quasi-judicial authority N. Murugan wrote that “A recommendation can influence an investment decision even when delivered during teaching.” The order also restricts asset sales by the academy and Sathe except when needed for refunds, and places debit restrictions on their bank accounts until required transfers are made.
