Tag: SEBI

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Leaders

SEBI bans Avadhut Sathe, seizes ₹546 crore illegally

The Securities and Exchange Board of India (SEBI) has taken stringent action against Avadhut Sathe and his trading academy, impounding ₹546 crore and barring them from participating in the securities market for offering unregistered investment advisory services. The regulator said that the Avadhut Sathe Trading Academy (ASTAPL), which marketed itself as an educational platform, provided subscribers with stock recommendations, stop-loss levels, and portfolio guidance, services that require proper SEBI registration.

The SEBI order covers the period between July 2017 and October 2025. According to the regulator, the academy misused its platform to give actionable market advice under the guise of education. Evidence collected included video recordings, chat logs, and online interactions showing that participants executed trades based on the advice provided. SEBI determined that the gains earned by Sathe and the academy through these activities, which reportedly amount to over ₹600 crore in fees, were unlawful and constituted illegal profits.

As part of its directive, SEBI has barred Sathe and his academy from buying, selling, or dealing in securities. They are also prohibited from offering any advisory or research services, including those disguised as educational content. The use of live market data, showcasing returns, or advertising participant profits to attract subscribers is strictly forbidden.

This marks one of the largest enforcement actions by SEBI against a “finfluencer”,  an individual leveraging social media or digital platforms to give financial advice. The regulator’s move serves as a stern warning to others providing stock-market tips or research guidance without SEBI registration.

SEBI emphasized that the order aims to protect retail investors from misleading promises of quick profits. Investors are advised to be cautious when following trading courses or financial influencers and to verify regulatory credentials before acting on investment advice.

This action reinforces SEBI’s commitment to ensuring transparency and compliance in India’s securities market, particularly in the rapidly growing digital advisory and trading education space.

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1 Minute-Read

SEBI to release LODR review paper soon

The Securities and Exchange Board of India (SEBI) plans to issue a comprehensive consultation paper reviewing its Listing Obligations and Disclosure Requirements (LODR) within the next four to six months.

The initiative seeks to simplify complex regulations, remove redundant provisions, and ease compliance, particularly for new-age firms and small to medium enterprises.

Key proposals under consideration include streamlined disclosure processes, unified filing systems, and customized norms for different types of companies.

The review reflects SEBI’s focus on improving transparency, enhancing efficiency, and fostering a more business-friendly regulatory environment while maintaining investor protection.

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Beyond

SEBI proposes changes to basic demat accounts

The Securities and Exchange Board of India (SEBI) has proposed changes to the framework governing Basic Services Demat Accounts (BSDA), a low-cost demat facility designed for small investors. The draft regulations aim to make account eligibility assessment fairer, more transparent, and easier to manage.

Under the proposed changes, delisted securities, shares removed from stock exchange trading will no longer be considered when calculating BSDA holdings. SEBI noted that delisted shares often lack a market price, making it difficult to assess their real value. Similarly, Zero Coupon Zero Principal (ZCZP) bonds, which are non-transferable and do not provide any principal or interest return, will be excluded from valuation. Including these instruments previously inflated an investor’s account value artificially, potentially disqualifying them from BSDA benefits.

For listed but illiquid securities, SEBI proposes using their last traded price for BSDA eligibility purposes. Promoter individuals holding securities will not be subject to these valuation changes.

Another key recommendation is to replace the current billing-cycle-based reassessment of BSDA eligibility with a uniform quarterly system-driven review, standardizing the process across investors. Additionally, SEBI has suggested allowing investors to provide required consents through authenticated methods beyond registered email IDs, making the process more convenient.

SEBI said these measures aim to simplify account management, improve financial inclusion, and ensure that low-cost demat services benefit genuine small investors. The regulator has invited public comments on the draft proposal until 15 December 2025.

With these changes, SEBI hopes to ensure that BSDA holders are evaluated based on active and real investments, rather than on securities that are non-tradable, illiquid, or have no market value, thereby improving transparency and usability of the system for retail investors.

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Corporate

SEBI Widens IPO Anchor Investor Quota To 40%

The Securities and Exchange Board of India (SEBI) has amended rules regarding the share-allocation framework for anchor investors in maiden public offerings. This strategy is aimed at broadening the participation of domestic institutional investors such as mutual funds, insurance companies and pension funds.

Under this, Sebi has increased total reservation in the anchor portion to 40 per cent from 33 per cent earlier. This comprises 33 per cent for mutual funds and the remaining 7 per cent for insurers and pension funds.

If the 7 per cent reserved for insurers and pension funds remains unsubscribed, it will be reallocated to mutual funds, the markets regulator said in a notification dated October 31.

SEBI has also the number of anchor investors allowed for IPOs with an anchor portion above Rs 250 crore, by raising the existing limit from 10 to 15 per Rs 250 crore.

This means, a minimum of 5 and a maximum of 15 investors shall be allowed for allocations up to Rs 250 crore. For every additional Rs 250 crore or part thereof, an additional 15 investors are to be permitted, subject to a minimum allotment of Rs 5 crore per investor, according SEBI.

Also, in the discretionary allotment under anchor portion, Category I (up to Rs 10 crore) and Category II (above Rs 10 crore up to Rs 250 crore) have been merged into a single category for allocations up to Rs 250 crore, with a minimum number of anchor allottees as 5 and maximum as 15 (minimum allotment 5 crore per investor).

The framework would broaden the participation of long-term institutional investors in the IPOs. To give these effect, the regulator has amended Issue of Capital and Disclosure Requirements norms, which would come into force from November 30.

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Corporate

SEBI to Revamp Broker Rules by Dec. 2025

The Securities and Exchange Board of India (SEBI) is set to overhaul stock broker regulations that have been in place for over 30 years. The move aims to modernize rules, improve risk management, and strengthen data protection, including updated definitions for algorithmic and proprietary trading. SEBI Chairman Tuhin Kanta Pandey said the changes could be implemented by December 2025.

The decision follows a discussion paper issued in August and comes amid concerns about trading disruptions, such as a recent technical glitch at the Multi-Commodity Exchange (MCX). SEBI is analyzing the incident to prevent future problems and ensure market stability.

The regulator is also addressing investor concerns by allowing the transfer of physical securities bought before FY20. In addition, SEBI resolved a disclosure violation with brokerage Angel One, which will pay ₹34 lakh in settlement.

Pandey stressed that the reforms aim to make India’s markets more robust, transparent, and investor-friendly, keeping regulations in step with modern trading practices.

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