SEBI orders trading academy to refund Rs 546 crore over unregistered advice
SEBI found that Avadhut Sathe Trading Academy gave unregistered stock advice, ordered a Rs 546.17 crore refund and imposed Rs 11.5 crore in penalties.
The Securities and Exchange Board of India (SEBI) has ordered Avadhut Sathe Trading Academy Private Limited and its trainer-director to refund Rs 546.17 crore collected from course participants, in a final order dated 23 October 2026. SEBI found that the academy gave unregistered investment advice under the guise of stock market education, and imposed penalties totalling Rs 11.5 crore on the company and its two directors.
What Happened
According to the order, SEBI found that the trainer gave specific stock recommendations, entry and exit targets and stop losses during live market sessions and in WhatsApp groups. Neither the company nor its directors were registered with SEBI as investment advisers or research analysts. SEBI also found that the academy circulated misleading testimonial videos showing profits, while its analysis showed the participants were in net losses, and that this continued after a SEBI warning dated 1 March 2024.
Per the order, the academy collected about Rs 601.38 crore in fees between July 2015 and October 2025. The company and the trainer must jointly refund Rs 546.17 crore within five months through a dedicated bank account, and deposit interest of Rs 67.87 crore in SEBI's Investor Protection and Education Fund. Within 30 days they must publish a newspaper notice explaining how to claim a refund.
SEBI debarred the company and the trainer from the securities market for two years, or until the refund is completed, whichever is later. The second director, whose liability SEBI based on neglect of oversight, was debarred for six months. The penalties are Rs 6 crore on the company, Rs 4 crore on the trainer and Rs 1.5 crore on the second director, payable within 45 days. The order is a regulator's finding and can be appealed before the Securities Appellate Tribunal.
What It Means
Former course participants who paid fees should watch for the public notice, which must set out the claim process and a contact person. Refunds must be paid only by electronic transfer or other banking channels with an audit trail. Until the refunds are made, the company and the trainer cannot sell their assets except to pay refunds, and their bank accounts stay frozen for debits.
Source: SEBI order
This report describes enforcement actions and allegations on the public record, attributed to the officials cited. An order, FIR or chargesheet is not a conviction; parties are presumed innocent until proven guilty.
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Sources & Citations
- SEBI order — Securities and Exchange Board of India