The Securities Appellate Tribunal (SAT) has granted interim relief to Avadhut Sathe Trading Academy Private Limited and its promoters, Avadhut Sathe and Gauri Avadhut Sathe, in a case challenging an interim order passed by the Securities and Exchange Board of India (SEBI). The tribunal has allowed the academy to withdraw limited funds for essential expenses and fixed the next hearing for January 9, 2026.
SEBI, in its interim order issued earlier this month, had impounded ₹546 crore and barred the academy and its promoters from accessing the securities market. The market regulator alleged that the academy was effectively providing unregistered investment advisory and research analyst services while presenting itself as a stock market education and training platform. SEBI also directed banks to freeze the accounts of the academy and its promoters.
Challenging the order before SAT, the academy argued that the action was passed without giving it a prior hearing and had severely disrupted its operations. During the hearing, the tribunal considered the academy’s request to release funds to meet routine operational costs, including salaries, rent, and other basic expenses.
SAT allowed the withdrawal of up to ₹2.25 crore from the frozen accounts for one month to meet essential expenses. The tribunal, however, did not accept the academy’s higher request for funds, noting objections raised over expenses such as advertising and large seminar-related costs, which were not considered critical at this stage.
The tribunal has asked SEBI to file its detailed response to the appeal within six weeks. Until the next hearing, the interim directions of SEBI will continue to remain in force, except for the limited relief granted for operational expenses.
SEBI has maintained that its order was based on evidence gathered during investigations, including searches conducted earlier this year. The regulator has claimed that the academy made misleading claims about trading success and engaged in activities that fall under regulated investment advisory services without proper registration.
The case has drawn attention to the regulatory scrutiny of stock market training platforms and the fine line between education and investment advice. The outcome of the January hearing is expected to be closely watched, as it could have wider implications for similar entities operating in the financial education space.