Avadhut Sathe case: Why ASTA may challenge SEBI order before SAT over ‘grey areas’ in stock-market education rules

None of its social media handles or channels is monetised. The social media handles were created for continuous learning,” Moneycontrol quoted Sardana as saying.Avadhut Sathe case highlights grey areas in regulatory frameworkAvadhut Sathe’s case highlights gaps in the regulatory framework, Sardana argued during the hearing, pointing out that educational activities have not been clearly defined under SEBI’s guidelines.According to the Moneycontrol report, ASTA may challenge the regulator’s order before the Securities Appellate Tribunal (SAT), seeking greater clarity on the rules governing stock market education.SEBI imposes fine on Avadhut Sathe and his academySEBI, on 23 October, directed Avadhut Sathe Trading Academy Private Limited and its founder to refund ₹546.17 crore collected from participants for providing unregistered investment advisory and research analyst services, along with interest of ₹67.87 crore.The regulator has also barred the academy and Sathe from accessing the securities market for two years or until compliance with the refund direction, whichever is later.

In its 171-page final order, the regulator imposed a total penalty of ₹11.5 crore on the academy, Sathe and Gouri Avadhut Sathe for violations of securities market regulations.The regulator found that the academy and Sathe provided investment advice and research recommendations through paid programmes, sessions and WhatsApp groups without obtaining the required registration.The SEBI order also found that the academy used misleading promotional representations about returns to attract participants and that investment advice was provided without assessing the suitability of recommendations for recipients.