The Securities and Exchange Board of India (SEBI) has launched a search and seizure operation at the Karjat-based Avadhut Sathe Trading Academy (ASTA) over suspicion of unlawful financial gains. The operation, carried out over two intensive days, involved confiscating digital devices, trading records, and other materials for forensic analysis.
Alleged Gains and Market Response
While SEBI has not publicly confirmed any figures, social media and industry sources suggest ASTA may have generated ₹400–₹500 crore through practices that breach regulatory norms. Some reports anticipate potential penalties reaching ₹40–₹50 crore and even a ban from capital market participation.
What SEBI Aims to Address
SEBI’s intervention aligns with its broader mission to clamp down on unregistered market educators offering investment advice or trading calls without authorization. SEBI officials, including Whole-Time Member Kamlesh Chandra Varshney, emphasized that misleading youth in the name of education will not be tolerated. Investing via unregistered platforms or promoting penny stocks under the guise of coaching are direct violations of SEBI rules.
Finfluencer Industry Under Regulatory Clampdown
The action against Avadhut Sathe is part of a rising trend. SEBI has already impounded ₹53–₹54 crore in illegal gains from other finfluencers like Asmita Patel, and directed the return of unlawful profits from others. Just last year, SEBI flagged nearly 8,890 misleading posts across social platforms, moving to curb deceptive financial advisories.mint
Community Sentiment
Discussion across investor communities reflects widespread skepticism. One Reddit user bluntly stated:
“Avadhut Sathe is the biggest scammer.”
“These guys don’t make money from their trading strategies. They earn buttloads from courses…people fall for it.”
Another highlighted the staggering fee-based revenues:
“Income from training fees: 2021: ₹17 crore; 2022: ₹37 crore; 2023: ₹86 crore.”
Key Takeaways
| Topic | Details |
|---|---|
| Operation | Two-day SEBI raid at ASTA’s Karjat academy |
| Suspected Gains | Alleged ₹400–₹500 crore from unregulated activities |
| Potential Penalties | ₹40–₹50 crore fine, possible market ban |
| SEBI’s Objective | Crack down on unregistered advisory services and misleading guidance |
| Larger Trend | Heightened scrutiny of finfluencers and regulatory reinforcements |
