SEBI orders Avadhut Sathe Trading Academy to refund ₹546 crore; imposes ₹11.5 crore penalty
The regulator cited unregistered advisory services, misleading return claims and a failure to assess the suitability of investment recommendations to participants
The Securities and Exchange Board of India (SEBI) has ordered Avadhut Sathe Trading Academy Pvt Ltd (ASTAPL) and its founder, Avadhut Sathe, to refund Rs 546.17 crore to participants who enrolled in their unregistered investment advisory and research analyst services. The regulator has also imposed a penalty of Rs 11.5 crore on the academy, Sathe, and his wife, Gouri Avadhut Sathe.
The 171-page final order found that ASTAPL and its founder had provided investment advice and research recommendations without proper registration, used misleading promotional representations to attract participants, and provided unsuitable advice without assessing the recipient's suitability. ASTAPL and Sathe have been barred from accessing the securities market for two years, with Gouri Sathe facing a six-month ban.
The academy and Sathe have five months to complete the refunds, and their bank accounts have been frozen until the required amounts are deposited into the designated account and SEBI's Investor Protection and Education Fund.
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