Source money control
MUMBAI – In a significant development for the Indian financial education sector, the Securities Appellate Tribunal (SAT) on Friday granted partial interim relief to popular “finfluencer” Avadhut Sathe and his firm, Avadhut Sathe Trading Academy (ASTA).
The tribunal has allowed the academy to withdraw a limited sum of ₹2.25 crore from its frozen bank accounts to meet “basic and essential” operational expenses for one month. This comes after the Securities and Exchange Board of India (SEBI) had earlier issued a sweeping interim order on December 4, 2025, barring Sathe and freezing the academy’s funds.
The Appeal and SAT’s Ruling
Appearing before a bench led by Justice P.S. Dinesh Kumar, senior counsel for Avadhut Sathe sought a total stay on the SEBI order, which had directed the impounding of ₹546.16 crore in alleged “unlawful gains.”
The defense argued that the academy required ₹5.25 crore monthly to maintain its infrastructure and pay staff. However, SAT restricted the withdrawal to ₹2.25 crore, noting that a significant portion of the requested amount (roughly ₹3 crore) was earmarked for marketing and seminars—activities the tribunal did not deem essential for immediate survival.
Key highlights of the SAT proceedings:
Fund Access: Only ₹2.25 crore permitted for immediate monthly expenses.
No Stay on Ban: The tribunal did not stay the SEBI order barring Sathe from the securities market.
Next Hearing: The matter is listed for further hearing on January 9, 2026.
SEBI’s Response: The regulator has been given six weeks to file its detailed reply to Sathe’s petition.
Background: SEBI’s Crackdown
The conflict stems from an intensive investigation by SEBI between 2017 and 2025. The regulator alleged that Sathe was running an unregistered investment advisory and research service under the guise of an “education academy.”
“Preliminary examination indicated that ASTA was providing specific buy/sell recommendations and live trade calls through WhatsApp groups like ‘Mentor Batch,’ which requires mandatory SEBI registration,” the regulator stated in its 125-page interim order.
SEBI also accused the academy of using misleading testimonials and only showcasing profitable trades to lure students, while many participants reportedly incurred heavy losses.
Academy’s Stance
In a statement released following the SAT hearing, Avadhut Sathe Trading Academy expressed optimism. “We have full faith in the judiciary and are confident that justice shall prevail. We remain committed to our student community and nurturing an ecosystem of skilled traders,” the statement read.
The defense counsel emphasized that the academy has trained over 3.5 lakh students and argued that SEBI’s ex-parte order was based on a very small number of complaints relative to its total student base.
