SEBI on Friday ordered Avadhut Sathe Trading Academy Pvt Ltd and its founder, Avadhut Sathe, to refund Rs 546.17 crore – plus Rs 67.87 crore interest – to 1,200 participants who paid for unregistered advisory services.
The regulator’s 171‑page final order bars the academy and Sathe from accessing the securities market for two years or until the refund is completed, whichever is later.
A total penalty of Rs 11.5 crore was imposed: Rs 6 crore to the academy, Rs 4 crore to Sathe and Rs 1.5 crore to Gouri Avadhut Sathe, who was also fined for failing to supervise.
Sebi found that the academy had collected Rs 601.38 crore since inception, but only Rs 546.17 crore was attributable to the relevant courses. Misleading claims of guaranteed returns and lack of suitability assessment were cited.
The refund must be completed within five months of the order, and the academy must publish a notice in a national newspaper within 30 days explaining the claim procedure.
Bank accounts of the academy and Sathe will remain frozen for debits until the full amount is deposited into the designated account and SEBI’s Investor Protection and Education Fund.