In a landmark crackdown on market misconduct, the Securities and Exchange Board of India (Sebi) has imposed a stringent ban on financial influencer Avadhut Sathe and his associated firm. The capital markets regulator has also ordered them to disgorge a staggering sum of Rs 546 crore for their role in an illicit scheme that manipulated investors.
The Core of the Scheme: Luring Participants
According to the detailed order released by Sebi on 04 December 2025, the investigation revealed a carefully devised plan. The primary architect of this scheme was identified as Avadhut Sathe (AS). The modus operandi involved leveraging his position as a financial influencer to attract individuals to his trading courses.
Participants enrolled in these courses were systematically lured into trading specific stocks. The order states that Sathe played a major role in creating and promoting this arrangement, which ultimately misled retail investors and distorted the natural price discovery mechanism of the securities market.
Regulatory Action and Immediate Consequences
The regulatory body has taken a zero-tolerance stance. Sebi has issued a comprehensive ban, prohibiting Avadhut Sathe and his firm from any access to the securities market. This prohibition includes:
- Buying, selling, or dealing in securities.
- Associating with any listed company or Sebi-registered intermediary.
The most significant financial penalty is the disgorgement directive. The Rs 546 crore order aims to claw back the unlawful gains made through the controversial scheme, setting a strong precedent for similar cases involving financial influencers.
Broader Implications for the Market and Influencers
This decisive action by Sebi sends a powerful message to the growing ecosystem of financial advisors and influencers operating online. It underscores the regulator's heightened vigilance over activities that can potentially misguide the investing public.
The case highlights the fine line between genuine financial education and manipulative practices. Regulators are now clearly signaling that individuals with substantial followings who provide investment advice will be held accountable for market fairness and integrity.
The order, dated 04 December 2025, marks a critical step in Sebi's ongoing efforts to cleanse the market of manipulative practices and protect the interests of common investors from sophisticated schemes disguised as educational content.
