Avadhut Sathe Barred as SEBI Impounds ₹546 Crore in Finfluencer Crackdown.

SEBI Impounds ₹546 Crore in Finfluencer Fraud Crackdown; Fraudster Avadhut Sathe Barred from Markets

SEBI has impounded ₹546.16 crore and barred finfluencer Avadhut Sathe from all market activities after uncovering a massive illegal advisory scheme. Sathe’s firm, Avadhut Sathe Trading Academy Pvt Ltd, collected ₹601 crore through “stock market education” programmes that secretly offered stock tips, violating SEBI regulations. The investigation found that eight courses formed the core of the fraudulent operation, with funds routed through multiple accounts. This landmark order signals SEBI’s toughest action yet against finfluencer-led financial scams.

Fraudster Avadhut Sathe and His Firm Collected ₹601 Crore Under Guise of Stock Market Education, Regulator Reveals in Landmark Order.

In a decisive crackdown, SEBI has impounded ₹546.16 crore from fraudster Avadhut Sathe. The Securities and Exchange Board of India barred him from the securities market. This action targets unregistered investment advisory activities. His firm collected funds under the guise of market education.

The regulator’s order reveals a systematic scheme. Avadhut Sathe Trading Academy Pvt Ltd (ASTAPL) offered paid courses. These courses secretly provided specific stock recommendations. SEBI Whole-time Director Kamlesh Chandra Varshney issued the restraining order. It prohibits all market dealings until further notice.

The Anatomy of a Finfluencer Fraud Scheme

Finfluencers are financial influencers on social media. They create content on investing across platforms like YouTube. Fraudster Avadhut Sathe exploited this trend masterfully. He offered live trading sessions using real market data. This blurred the line between education and illegal advisory services.

SEBI’s investigation identified eight specific courses. These were offered from January 2020 to October 2025. They formed the core of the unlawful activities. The total collection from all courses was ₹601.37 crore. The illegal gains from these eight courses reached ₹546.16 crore. Funds were routed through company and personal accounts.

Misleading Promises and Selective Displays of Profit

The scheme relied on portraying consistent trading success. Sathe and ASTAPL published selective profitable trades online. They claimed course participants earned large, consistent returns. Trainers were marketed as stock market experts. This marketing targeted gullible investors seeking quick wealth.

SEBI’s forensic analysis revealed a stark contrast. The claimed profits were a mirage. Most trainers and participants faced net losses. An administrative warning was issued in March 2024. It cautioned against misrepresentation and selective disclosures. Despite this, they continued publishing misleading videos.

Investor Complaints and Social Media Deception

Several complaints triggered the deeper probe. Subscribers alleged substantial losses despite promises. They cited unrealistic returns promised in the programmes. SEBI examined session recordings and related documents. The evidence confirmed the fraudulent nature of the operations.

Fraudster Avadhut Sathe collected substantial fees from investors. The regulator noted a significant social media presence. This includes platforms like Instagram, X, and Telegram. This influence increased the risk for gullible investors. SEBI warned the public to remain vigilant against such schemes.

SEBI’s Stern Actions and Market Integrity

The order restrains Sathe and ASTAPL from market access. They cannot buy, sell, or deal in any securities. This pre-emptive measure aims to protect the investing public. It highlights SEBI’s focus on unregistered finfluencer activities. The crackdown signals tighter scrutiny on social media financial advice.

Gouri Avadhut Sathe handled day-to-day company affairs. She was not found providing direct advisory services. The primary role was played by fraudster Avadhut Sathe. He devised the scheme to lure participants into trading specific stocks. Recommendations were given for a consideration under educational pretexts.

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Related Article: SEBI Raids Avadhut Sathe’s Karjat Trading Academy.

The Larger Crackdown on Unregistered Advisory Services

This case is part of a broader regulatory sweep. SEBI is actively pursuing unregistered investment advisors. The finfluencer phenomenon presents a unique challenge. It combines social media reach with financial persuasion. The line between education and actionable advice is often crossed.

The ₹546 crore impoundment is a significant recovery. It represents the proceeds from the unregistered services. The scale highlights the scheme’s vast reach and impact. SEBI’s action reinforces the need for proper registration. All investment advisors must be SEBI-registered to operate legally.

Protecting Investors from Social Media Financial Hype

Investors are urged to verify advisor credentials. SEBI maintains a register of authorized individuals and entities. Any promise of guaranteed returns should be a red flag. The Sprouts News Special Investigation Team advises thorough due diligence. Real financial education never includes specific stock tips for a fee.

The investigation remains ongoing for comprehensive resolution. SEBI’s proactive stance aims to deter similar schemes. It safeguards market integrity and retail investor interests. This landmark order sets a precedent for future enforcement. It underscores zero tolerance for market manipulation and fraud.

A Warning to Finfluencers and Investors

The case against fraudster Avadhut Sathe is a cautionary tale. It demonstrates the consequences of bypassing financial regulations. For investors, it emphasises the perils of following unverified online advice. For finfluencers, it underscores the imperative of regulatory compliance.

SEBI’s stringent actions restore confidence in market oversight. The message is clear: unlawful gains will be impounded. Entities operating without registration will face severe penalties. Sprouts News provides this report to promote informed investment decisions. Always prioritise authorized guidance over social media hype.

Investigative journalist Unmesh Gujarathi and his Sprouts News SIT has already warned against fraudster Avadhut Sathe’s wrongdoing.

Long before this SEBI order, our Special Investigation Team, led by Unmesh Gujarathi, exposed the malpractices of Avadhut Sathe. We documented his schemes and filed formal complaints with regulatory authorities. Our sustained reporting highlighted the risks posed by such unregistered finfluencers. If you have information on similar scams or scandals, please contact our confidential tip line. Help us protect more investors from financial fraud.