India’s markets regulator has ordered Avadhut Sathe Trading Academy and its founder to repay Rs 546.17 crore, plus interest, after finding they provided unregistered investment advice and research services.
India’s markets regulator has ordered Avadhut Sathe Trading Academy Pvt Ltd and its founder, Avadhut Sathe, to return Rs 546.17 crore collected from participants for what it said were unregistered investment advisory and research analyst services. The Securities and Exchange Board of India also calculated interest of Rs 67.87 crore and said the refund must be completed within five months of the order.
In a 171-page final order, Sebi said the academy and Sathe used paid programmes, training sessions and WhatsApp groups to give investment advice and stock research recommendations without the registrations required under market rules. The regulator said promotional material also included misleading claims about returns, while recommendations were allegedly made without checking whether they were suitable for the people receiving them.
Sebi said the academy had collected about Rs 601.38 crore from course participants since it began operations, but it identified Rs 546.17 crore as linked to the programmes at the centre of the case and therefore subject to disgorgement. The order also requires the academy and Sathe to publish newspaper notices within 30 days setting out how investors can seek refunds, while their bank accounts are to remain frozen for debits until the money is deposited into the designated account and, where applicable, the Investor Protection and Education Fund.
Alongside the refund order, Sebi imposed a total penalty of Rs 11.5 crore on the academy, Sathe and Gouri Avadhut Sathe. The academy was fined Rs 6 crore, Sathe Rs 4 crore and Gouri Avadhut Sathe Rs 1.5 crore. Sebi said Gouri Avadhut Sathe’s liability stemmed from a failure to exercise oversight, although reports differed on the length of her market ban: NDTV said she has been barred for six months, while other outlets reported a two-year restriction on the academy and Sathe, or until the refund obligation is met, whichever is later.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
