Markets regulator Securities and Exchange Board of India (SEBI) has directed Avadhut Sathe Trading Academy Private Limited (ASTPL) and its founder, Avadhut Sathe, to refund ₹546.17 crore collected from investors and course participants for conducting unregistered investment-advisory and research-analyst activities. The final order, issued on 24 October 2026, marks one of the larger enforcement actions against an unregistered financial-education firm in recent years.

Key Directions in the SEBI Order

SEBI has barred both ASTPL and Avadhut Sathe from accessing the securities markets for two years, or until they fully comply with the refund direction — whichever is later. Gouri Avadhut Sathe, a director of the academy, faces a shorter market ban of six months.

The regulator has mandated that the refund amount be deposited in a dedicated bank account within five months of receiving the order. Within 30 days, the academy must publish notices in English, Hindi, and a widely circulated local-language newspaper explaining the refund-claim process to affected investors.

Repayments must be made exclusively through electronic fund transfers or other banking channels that maintain audit trails to identify beneficiaries, according to the order. Any surplus remaining after all refunds have been processed must be handed over to SEBI and held in escrow for one year, after which residual funds will be transferred to the Investor Protection and Education Fund (IPEF).

Penalties Imposed

Beyond the refund mandate, SEBI has imposed a combined penalty of ₹11.5 crore on the three respondents, payable within 45 days of receiving the order. The breakdown is as follows: ASTPL must pay ₹6 crore, Avadhut Sathe faces a penalty of ₹4 crore, and Gouri Sathe has been penalised ₹1.5 crore.

SEBI also directed that bank accounts of all three respondents be frozen for debits until the entire refund amount is deposited. 'The bank accounts of the Noticees shall be frozen for debits till the time they deposit the entire amount in the dedicated bank account and IPEF maintained by SEBI,' the order stated.

What Triggered the Investigation

The action followed an inquiry in which SEBI concluded that the academy had moved well beyond the legitimate scope of stock-market education. According to the regulator, ASTPL and its founder allegedly provided stock-specific advice, trading calls, entry and exit targets, stop-loss levels, and price-direction forecasts — all activities requiring mandatory registration under SEBI regulations — without holding the necessary licences.

Notably, the academy's promotional material reportedly continued to selectively showcase profitable trades and claim high returns to participants even after an administrative warning had been issued in March 2024. The persistence of such conduct following a prior caution will likely weigh heavily in any appeal proceedings.

Broader Context and What Happens Next

This case is part of a wider SEBI crackdown on entities that use the guise of financial education to solicit investors and charge fees for advice or tips that legally require a registered investment adviser (RIA) or research analyst (RA) licence. Regulators have flagged a surge in such operations — often promoted aggressively on social media — as a systemic risk to retail investors.

Affected investors should watch for the public notices that the academy is legally required to publish within 30 days. Those who have not already filed complaints may do so through SEBI's SCORES portal. The full compliance timeline extends up to five months for the deposit and a further year for escrow distribution — meaning final resolution for some claimants could stretch into 2027.