SAT - Corporate Updates

SAT orders ₹100 cr deposit for Avadhut Sathe

The Securities Appellate Tribunal (SAT) has granted partial relief to trading educator Avadhut Sathe and his Avadhut Sathe Trading Academy (ASTA) in an ongoing case with market regulator SEBI, directing them to deposit ₹100 crore while allowing the regulator’s probe to continue.

SEBI had passed an interim order in December alleging that Sathe and his academy were providing unregistered investment advisory and research analyst services in the guise of trading education. According to SEBI, the academy collected nearly ₹601 crore from more than 3.3 lakh participants through various courses and programmes. The regulator barred Sathe and ASTA from accessing the securities market, froze bank and demat accounts, and ordered the impounding of about ₹546 crore, which it termed unlawful gains.

Challenging the order before SAT, Sathe argued that his academy only offered educational services and did not provide stock tips or investment advice. He also contended that SEBI’s action was excessive and was taken without giving him a proper hearing.

In its ruling, the SAT bench acknowledged that SEBI had made out a prima facie case warranting further investigation. However, it said the full amount sought by SEBI need not be secured at this interim stage. The tribunal noted that significant sums had already been paid by the academy in the form of income tax and GST, and that the group also owned fixed assets of substantial value.

Balancing these factors, SAT directed Sathe and ASTA to deposit ₹100 crore in a fixed deposit, with a lien marked in SEBI’s favour. The tribunal also restrained them from selling or creating third-party rights over their fixed assets during the pendency of the proceedings.

The order provides conditional relief: once the ₹100-crore deposit is made and a compliance affidavit is filed, restrictions on bank accounts and certain market-related prohibitions will be eased. However, the tribunal did not quash SEBI’s interim order or its findings, making it clear that the investigation and adjudication process will continue.

SAT also granted the academy time to submit its reply to SEBI’s show-cause notice. The regulator will proceed with further action based on the outcome of the ongoing inquiry, keeping investor protection at the centre of the case.

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SAT grants interim relief to Avadhut Sathe Trading Academy

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.

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