Description

SEBI restrains Avadhut Sathe Trading Academy Private Limited and Avadhut Dinkar Sathe from buying, selling or dealing in securities until further orders.

Summary

SEBI has issued an ex-parte interim order dated December 04, 2025 (Order No. QJA/KV/MIRSD/MIRSD-SEC-1/31823/2025-26) restraining Avadhut Sathe Trading Academy Private Limited (PAN: AATCA1675K) and Avadhut Dinkar Sathe (PAN: BCSPS7915K) from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever until further orders. The investigation involved analysis of stock recommendations, trading by course participants, fees collected, and testimonials.

Key Points

  • Two entities restrained: Avadhut Sathe Trading Academy Private Limited and Avadhut Dinkar Sathe
  • Complete ban on buying, selling or dealing in securities in any manner
  • Order issued under Sections 11(1), 11(4), 11(4A), 11B(1), 11B(2) and 11D of SEBI Act, 1992
  • Third noticee Gouri Avadhut Sathe (PAN: BIUPS6942Q) also mentioned in the SEBI order
  • Investigation covered stock advice/recommendations provided during sessions and through WhatsApp groups
  • Analysis included trading done by course participants, fees collected, and trading accounts owned by the entities

Regulatory Changes

No new regulatory framework changes. This is an enforcement action under existing SEBI Act provisions.

Compliance Requirements

  • NSE members must take note of the order and ensure compliance
  • Restrained entities cannot buy, sell or deal in securities until further orders
  • Exception: Entities may close out/square off open positions in exchange traded derivative contracts within 3 months from December 04, 2025 or at contract expiry, whichever is earlier
  • Entities permitted to settle pay-in and pay-out obligations for transactions taken before close of trading on December 04, 2025
  • Members should refer to the consolidated list of debarred entities on NSE website

Important Dates

  • December 04, 2025: Date of SEBI order
  • December 05, 2025: NSE circular issued (Circular Ref. No: 532/2025)
  • Within 3 months from December 04, 2025: Deadline to close out open derivative positions (by March 04, 2026)

Impact Assessment

Market Impact: Limited direct market impact as the order affects specific entities involved in providing trading education/advice rather than broad market participants.

Operational Impact: The restrained entities are prohibited from all securities trading activities. Course participants of Avadhut Sathe Trading Academy may be affected if they relied on the academy’s trading advice and recommendations. NSE members must monitor and ensure these entities do not transact through their platforms.

Investor Protection: The order protects investors from potentially misleading or unauthorized trading advisory services. Members should consult the consolidated debarred entities list available at: https://www.nseindia.com/regulations/member-sebi-debarred-entities

Further Information: Detailed SEBI order available at http://www.sebi.gov.in. Queries to be directed to dl-invsg-all@nse.co.in

Impact Justification

High severity SEBI interim order restraining entities from securities trading; high importance due to regulatory enforcement action; medium impact as affects specific entities rather than broad market operations