Trading Academy and Its Directors Barred from Securities Market for Running Unlicensed Investment Advisory and Fraudulent Trading

SEBI initiated regulatory action against Avadhut Sathe Trading Academy Private Limited (ASTA), its director Avadhut Dinkar Sathe, and Gouri Avadhut Sathe after discovering that the entity’s operations extended far beyond routine financial education. While ASTA marketed itself as a trading and stock market academy offering advanced programs such as “Mastering the Art of Trading” and “Mentorship Programs,” SEBI’s inquiry found that the Noticees were providing highly specific trading calls, personalized guidance, return-linked assurances, and stock recommendations through paid courses, WhatsApp groups and other communication channels, all without obtaining mandatory registration under the SEBI (Investment Advisers) Regulations, 2013.

The investigation also revealed that the promoters were allegedly trading in the same scrips they recommended to participants, a serious conflict of interest that SEBI classified as a Fraudulent and Unfair Trade Practice (FUTP). Despite an earlier administrative warning from SEBI, the Noticees continued these unregistered investment advisory activities, collecting substantial fees from July 25, 2015 to October 9, 2025. Given the scale of operations and investor reach, SEBI proceeded against them through an Ex-Parte Interim Order cum Show Cause Notice.

Main Issue: Whether the Noticees violated the SEBI Act, 1992 and the SEBI (Investment Advisers) Regulations, 2013 by operating as unregistered investment advisers and engaging in fraudulent and unfair trade practices through their trading academy.

SEBI’s Order: SEBI issued an Ex-Parte Interim Order restraining all three Noticees from buying, selling, or dealing in securities in any manner until further directions. Recognising the seriousness of the allegations and the risk to investor funds, SEBI directed Noticee 1 and Noticee 2 to deposit the entire amount collected from their unregistered investment advisory activities into an interest-bearing escrow account with a nationalised bank within 21 days. The order also placed strict controls on all their bank accounts, permitting debits only for escrow deposits, statutory dues, and repayment of existing loan instalments.

SEBI also issued a Show Cause Notice requiring the Noticees to explain why further penalties, and permanent directions should not be imposed for violating investor protection norms. The interim order aims to safeguard investors and preserve the integrity of the securities market pending final adjudication.

To Read Full Order, Download PDF Given Below