Markets Ban On Finfluencer, Watchdog Flags Rs 546 Crore "Unlawful Gain"

Finfluencer and markets trainer Avadhut Sathe has vowed to challenge the Securities and Exchange Board of India (SEBI)'s order banning him and his firm, Avadhut Sathe Trading Academy (ASTA), from the securities market.

The SEBI had accused Sathe and his firm of alleged unregistered investment advisory and research analyst business and directed them to return Rs 546 crore "unlawful gain" that it collected from its students.

Sathe allegedly lured the participants to trade in certain stocks under the pretext of imparting education, according to the SEBI order.

The regulator called the action necessary for "misleading the public or influencing the investors to deal in securities, collecting fees from the public, and engaging in unregistered investment advisory and research analyst activities."

The ASTA "charged a fee of INR 6.75 lakhs" per student in the last two batches of the mentorship course, the SEBI order said.

The PAN details of only 186 of the 311 participants of the course could be obtained, it added. The participants incurred a loss of over Rs 1.93 crore during the six months after completing the course, a copy of the order showed.

Sathe denied the charges and vowed to challenge the market regulator's ban order. His academy also asserted that it is only a training institution and not an investment adviser or research analyst. Calling itself a victim of a regulatory vacuum, it said it doesn't issue stock analysis or recommendations, investment advice, or research to its students.

"Our programmes are designed exclusively for skill-building and decision-making training in financial markets. We neither issue stock recommendations nor provide investment advice, nor do we monetise our social media platforms," said ASTA.

The Avadhut Sathe Training Academy (ASTA) was set up in 2008 by Sathe after he returned to India following career stints in Singapore, Australia, and the US. With trading experience in the markets since 1991, he expanded his training programmes to 17 centres across India.