SAT Upholds SEBI Interim Order Against Avadhut Sathe Academy, Cuts Deposit To ₹100 Crore

The Securities Appellate Tribunal (SAT) at Mumbai on Thursday upheld an ex-parte interim order passed by the Securities and Exchange Board of India against Avadhut Sathe Trading Academy Private Limited.

At the same time, it partly modified the direction, requiring the appellants to secure Rs 546.17 crore. The amount was reduced to Rs 100 crore. The appeal was heard by Presiding Officer Justice P.S. Dinesh Kumar and Technical Member Meera Swarup.

The tribunal said SEBI had made out a prima facie case of regulatory violations but found that the quantum of the deposit needed reconsideration.

The academy has been offering stock market training since 2008. In 2025, it expanded into a residential campus known as ASTA Gurukul.

In August that year, SEBI carried out search and seizure operations at the Gurukul premises and at the residences of the directors. Electronic devices and data were seized. A few months later, in December 2025, SEBI issued an ex-parte interim order cum show cause notice. The order restrained the appellants from accessing the securities market and directed them to secure Rs 546.17 crore.

SEBI's case is that the academy went beyond classroom education. According to the regulator, it provided investment advisory and research analyst services without registration. SEBI alleged that live market data was used during classes to give stock recommendations.

It also pointed to selective and misleading testimonials uploaded on YouTube, claiming large trading profits. SEBI further alleged that paid WhatsApp groups were used to share stock tips, including targets and stop-loss levels. An administrative warning was issued in March 2024. SEBI said the academy continued these activities even after that.

The academy denied any wrongdoing. It said its courses were purely educational. It argued that SEBI's directions were impossible to comply with. Its bank accounts had been frozen. It was also barred from accessing the securities market.

Despite this, it was asked to secure over Rs 546 crore. The academy also said SEBI had been aware of its activities since 2020. It argued that it should have been heard before such an interim order was passed. Before the tribunal, however, the academy chose not to address the merits of SEBI's factual allegations. It said it would do so while replying to the show cause notice.

While examining the material on record, the tribunal noted that three investor testimonials relied upon by SEBI were uploaded after the administrative warning. It also recorded that a video clip was played during the hearing. The clip showed stock recommendations being made using live market data.

The academy did not deny that the clip related to live data of the Power Finance Corporation scrip.

“In view of the admitted position that what was screened in the court was 'live data', it is reasonable to infer that the 'live data' material was used and demonstrated in the classes,” the tribunal observed.

The tribunal refused to set aside the interim order, holding that “SEBI has made out a prima facie case of violation of IA and RA Regulations.”

At the same time, it took note of the taxes already paid and the value of fixed assets. It held that the ends of justice would be met by directing a deposit of Rs 100 crore and restraining the appellants from alienating their fixed assets.

For Appellant: Senior Advocates Janak Dwarkadas and Gaurav Joshi, Advocates Vikram Chavan, Rompal Singh Kohli, Sejal Todkar, Ritish Desai and Shivani Bhatia

For Respondents: Senior Advocate Chetan Kapadia, Advocates Suraj Choudhary, Nidhi Singh, Komal Shah, Nidhi Faganiya and Nishin Shrikhande