Archive · 28 Jan 2026
Sebi Cracks Down on Finfluencers: Avadhut Sathe Case
The Securities and Exchange Board of India (Sebi) has taken action against Avadhut Sathe Trading Academy for providing investment advice without proper registration.
The academy was found to have misled investors by claiming they made profits when they actually didn't.
Sebi ordered the academy to pay a penalty of 100 crore.
This case highlights the need for clearer regulations to distinguish between financial education and investment advisory services.
Finfluencers, who provide financial advice on social media, are not currently regulated like investment advisors.
Sebi has been working to remove misleading content and prevent finfluencers from influencing investment decisions using real-time market data.
Sebi ordered Avadhut Sathe Trading Academy to pay 100 crore for unregistered activities.
The academy allegedly made 546 crore from misleading investors with false testimonials.
Neither Sathe nor his academy are registered with Sebi, despite having a large following.
Sebi is working to clarify the distinction between financial education and investment advisory.
Finfluencers are not regulated like investment advisors and often provide unregistered advice.
- Who
- Avadhut Sathe Trading Academy and its directors
- What
- Unlawful activities and unregistered investment advisory services
- When
- Between 2020 and 2025
- Where
- Mumbai, India
- Why
- To mislead investors and provide unregistered investment advice
- Entity Involved
- Avadhut Sathe Trading Academy
- Penalty Amount
- 100 crore
- Alleged Earnings
- 546 crore from unregistered activities
- Number of Students
- 45,000+ students and 320,000 participants
- Regulator Involved
- Securities and Exchange Board of India (Sebi)
- Key Issue
- Misleading testimonials and unregistered advisory services
- Regulation Year
- 2024
- Content Removed
- 15,000+ content sites by finfluencers