The Securities and Exchange Board of India (SEBI) has carried out a large-scale search operation at the Karjat-based academy of investment influencer Avadhut Sathe, sparking debate over the role of unregulated “finfluencers” in India’s markets. The action, which took place on August 20–21, involved seizing trading data and digital devices from the Avadhut Sathe Trading Academy (ASTA), The Indian Express reported.
SEBI’s crackdown on finfluencers
According to Business Standard, the enforcement marks one of SEBI’s most high-profile actions against the booming finfluencer industry. Officials are probing whether Sathe’s institute, which promotes itself as a training academy, was effectively offering stock tips in the guise of financial education. Sebi whole-time member Kamlesh Varshney said at a FICCI event that, while education per se is allowed, "guaranteeing assured returns, making trading calls within classrooms, and employing live trading information without the requisite Sebi registration is not allowed."
SEBI has ramped up its monitoring of unregistered advisers, closing down close to 70,000 illegal finfluencer channels on YouTube and social media in the past few years. The regulator has also signalled potential collusion between some trading academies and market operators in rigging penny stocks, said Business Standard.
Who is Avadhut Sathe?
Avadhut Sathe, a self-proclaimed trader, trainer, and mentor, entered the markets in 1991 and started delivering seminars in 2008. His ASTA platform has over 9 lakh YouTube subscribers and close to 5 lakh Facebook fans. Famous for teaching in an unconventional manner through dance, inspirational speeches, and live analysis of charts, he has created a devoted following.
SEBI's action being met with a response by Sathe, he released a video message on August 22, claiming: "We do not give any advisory services… we are cooperating fully with authorities." His academy explained to The Indian Express that it "does not give trade tips, stock calls, or promise assured returns."
Though SEBI has not yet formally named Sathe, the search reflects the regulator's determination to clamp down on deceptive financial advice in the form of coaching. For his supporters, the case puts the fuzzy boundary between financial education and unregistered stock advisory to the test.
