SEBI Cracks Down on Avadhut Sathe’s Karjat Trading Academy.

Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098

SEBI has raided financial influencer Avadhut Sathe’s Karjat Trading Academy in a two-day search operation, seizing digital devices and trading records. The crackdown follows allegations of misleading retail investors, penny stock collusion, and unregistered advisory activities. Sprouts News SIT finds this move marks SEBI’s intensified crackdown on unregulated finfluencers to safeguard investor interests.

The Securities and Exchange Board of India (SEBI) has conducted a two-day search and seizure operation at the high-profile finfluencer Fraud Avadhut Sathe’s Trading Academy (ASTA) in Karjat. The action follows serious allegations of misleading small investors through unregulated advisory and manipulative practices.

According to information accessed by the Sprouts News Special Investigation Team (SIT), the raids were carried out on August 20 and 21, 2025, lasting late into the night. Under the supervision of SEBI’s Deputy General Manager, officials seized laptops, mobile devices, trading records, and other digital evidence.

Unregulated finfluencers who lure retail investors with “guaranteed returns” or conduct direct trading calls inside classrooms have come under SEBI’s radar.

At a FICCI-CAPAM program, SEBI Whole-Time Member Kamlesh Chandra Varshney said:

“Misleading the youth under the garb of education, promising assured profits, or demonstrating direct trading in classrooms without registration is illegal. Such activities require SEBI approval.”

Known on social media as a so-called “Market Guru”, Fraud Avadhut Sathe enjoys a massive following of 9.4 lakh YouTube subscribers and significant influence among retail traders.

However, complaints suggest that Fraud Avadhut Sathe’s Trading Academy (ASTA) was allegedly involved in collusion with operators to pump-and-dump penny stocks. Students were reportedly taught using these stocks as “examples,” while their prices were artificially inflated.

Trader Ashish Gupta claimed on X (formerly Twitter) that Fraud Avadhut Sathe’s ASTA may have illegally earned ₹400–500 crore, and SEBI could impose a heavy penalty and ban him from the markets.

To curb fraud, SEBI has tightened its surveillance on self-styled market experts. Over the past year, more than 15,000 websites have been blocked, and finfluencers such as Mohd. Nasiruddin Ansari and Asmita Jitesh Patel were banned from securities markets.

•Making profit-guarantee claims.

•Running misleading third-party promotions.

•Offering unregistered investment advisory services.

SEBI has also deployed advanced technology and experts to detect algorithmic trading frauds, gamma manipulation, and pump-and-dump schemes.

With retail participation in Indian stock markets at an all-time high, the Karjat crackdown sends a clear signal: unregulated investment advice disguised as “education” will not be tolerated.

According to Sprouts News SIT, following this raid, several trading academies may be forced to either register with SEBI or shut down unregulated operations.

Experts believe the Fraud Avadhut Sathe case will serve as a landmark action to restore investor confidence and bring transparency in India’s capital markets.

The SEBI raid on Fraud Avadhut Sathe’s Trading Academy in Karjat is not an isolated case, but part of a larger crackdown on finfluencers misleading retail investors across India.