In a landmark move against unregistered financial influencers, the Securities and Exchange Board of India (Sebi) has barred prominent stock market trainer Avadhut Sathe and his Avadhut Sathe Trading Academy (ASTA) from the securities market. The regulator has also ordered the impounding of a staggering ₹546 crore in alleged illegal gains, marking its most significant clampdown on a 'finfluencer' to date.
The Rise and Fall of the ASTA Empire
Avadhut Sathe, who began trading in 1991 according to his academy's website, founded ASTA in 2015. It grew into a vast training network with around 12 trainers and over 600 leaders and monitors across India and overseas. The academy operated more than 200 'Satsang Centres' and hosted large monthly 'Mahasatsang' events. Its online presence was massive, with 215,000 Instagram followers and a YouTube channel boasting 933,000 subscribers and over 600 videos.
The core promise was transformative: turning ordinary retail traders into multi-millionaires. ASTA ambitiously aimed to help "one lakh professional ASTAians cross the ₹1 crore milestone by 2031." Viral clips showed Sathe dancing in front of trading screens and showcased dramatic success stories, like a participant allegedly turning ₹1.8 lakh into ₹1 crore in 18 months.
Despite this reach, Sathe distanced himself from the 'finfluencer' tag, calling them "reel traders" and positioning ASTA as a structured coaching institute.
Sebi's Investigation Reveals a Different Reality
The market watchdog's interim ex-parte order, passed late on Thursday, paints a starkly different picture. A search operation at ASTA's centre and Sathe's residence in August 2024 revealed the academy was running live trading rooms where participants received direct, real-time guidance on specific stocks.
Recordings showed Sathe giving explicit buy-sell cues, resistance levels, stop-loss points, and intraday strategies. In one instance on 10 February 2024, he analysed an IDFC Bank trade on his shared screen, telling students precisely where to enter. Sebi cited WhatsApp messages where Sathe gave stock-specific advice, like "Power Grid likely to make All time high."
The regulator found ASTA's claims of student success were often inflated. A homemaker presented as earning ₹1 crore in 2.5 years had actually made only ₹4.17 lakh. Sebi analysed the trading outcomes of 186 students from the high-fee mentorship program (costing ₹6.75 lakh) and found they collectively recorded losses of ₹1.93 crore. ASTA and Sathe himself also booked significant losses in recent financial years.
The Fallout and ASTA's Defence
Sebi's order strikes at the heart of one of India's most prominent stock training ecosystems. The regulator alleges ASTA functioned not as an educational institute but as an unregistered investment advisory engine, making illegal gains through its activities.
In response, ASTA has denied any wrongdoing. In a statement, the firm said all interactions were "purely for educational and conceptual clarity" and should not be construed as advisory. It also rejected the finfluencer label, stating it does not monetize its social media channels. An ASTA spokesperson said, "The order will be challenged in the appropriate forum and we have full faith in the legal and judicial framework."
This decisive action by Sebi sends a strong warning to the burgeoning finfluencer ecosystem in India, emphasizing the strict boundary between generic financial education and regulated investment advice.
