Introduction
This article summarizes the entire scam in simple language to help investors identify red flags and avoid similar traps.
1. What Was Avadhut Sathe Trading Academy Claiming?
According to SEBI, ASTAPL promoted itself as:
A premier stock market training institute
Teaching “price action”, “millionaire secrets”, “mentorship”, etc.
With the message that anyone can become consistently profitable
They aggressively marketed via:
YouTube & Instagram videos
Paid webinars
Testimonials showing inflated success stories
Even a promotional video featuring a 12-year-old child claiming trading is “easy after training”
The academy charged fees ranging from:
| Program | Fee (Excluding GST) |
|---|---|
| Eye Opener Webinar | ₹500 |
| Flagship GEO Programs | ₹72,000 |
| GEO Plus | ₹1,70,000 |
| Mentorship | ₹6,75,000 |
| Samanvay | ₹90,000 |
Despite the claim of being a “training” company, SEBI found their activities to be investment advisory and research analysis without registration.
2. What Did SEBI Find in the Investigation?
SEBI’s investigation covered 2017 to 2025 and included:
Search & seizure at ASTAPL offices and directors’ residences
Review of live session recordings
WhatsApp group messages
Complaints filed by students
Analysis of participant trading accounts
The findings were shocking:
(A) ASTA was giving direct stock tips
SEBI found multiple instances where Avadhut Sathe:
Gave exact stock names
Suggested buy/sell levels
Specified stop-loss & target
Predicted price movements for “tomorrow”
Recommended futures & options strategies
Showed his own live trades to induce students
Asked participants to enter trades at specific levels
This is textbook investment advisory, not “education”.
(B) They used live market trading as a sales tool
Live trading was used to:
Impress new students
Make trading look easy
Push them into upgrading to ₹6.75 lakh mentorship programs
In several sessions, students confirmed they took trades exactly as instructed.
(C) WhatsApp groups were used for paid stock advice
Mentorship groups (with 80–150 members each) received continuous messages such as:
“Natural Gas 354 target if range breaks”
“PFC great entry near 160, SL clear, ATH possible”
“BHEL big target on downside below 40”
“SBI bottom is in – 750 first target”
“Nifty likely to break support and head towards 22,000”
This is full-scale advisory service, provided without a SEBI IA/RA registration.
(D) Misleading marketing and selective profit showcasing
SEBI found ASTAPL:
Showed profitable trades, hiding losing trades
Claimed all participants made money
Encouraged students to take loans to pay fees
Falsely portrayed unrealistic returns
Overstated trainer expertise
But when SEBI analyzed actual participant trading data:
Almost all students were in net losses & claimed Market Guru himself made a loss of Rs.6,19,72,653.30 between 1st April 2024 & 30th Nov 2025.
(E) Massive fees collected from innocent investors
SEBI found significant revenue collection from thousands of students despite carrying out unregistered advisory, which is illegal.
3. SEBI’s Observations & Charges
SEBI prima facie concluded that ASTAPL & its directors violated:
SEBI Act, 1992
Investment Adviser Regulations, 2013
Research Analyst Regulations, 2014
PFUTP Regulations (Fraudulent & Unfair Trade Practices)
The behaviour was classified as:
Inducement
Misrepresentation
Assured returns
Unregistered advisory
Misleading advertisements
Given the scale and seriousness, SEBI passed an ex-parte interim order to protect investors.
4. Why Do Investors Fall for Such Scams?
Because the model is designed to manipulate:
✓ Emotional appeal — “I can also become a trader”
Videos show lavish lifestyle, children trading, and rags-to-riches stories.
✓ Misuse of charts & jargon
Terms like “super tide”, “breakout”, “options strategies” create the illusion of expertise.
✓ Live trading hypnotism
Real-time trades create FOMO and admiration.
✓ WhatsApp community effect
When 150 people follow the same guru, the herd mentality kicks in.
✓ Promise of fast success
Most retail investors want shortcuts, not discipline.
5. Clear Red Flags Every Investor Should Remember
🚫 1. Anyone giving stock-specific levels without SEBI registration is illegal
🚫 2. Assured returns are a fraud under Indian law
Even mutual funds don’t assure returns.
🚫 3. Live trading sessions are a classic manipulation tool
Used by almost every scam “trainer”.
🚫 4. Expensive courses promising easy profits are a trap
Price does not equal quality.
🚫 5. WhatsApp/Telegram groups giving “charts”, “signals”, “levels”
These are nothing but illegal advisory channels.
6. The Most Important Lesson: SEBI Registration Is Non-Negotiable
A genuine investment advisor must have:
SEBI IA Registration Number
Fee structure regulated by SEBI
Pay fees only through @valid UPI Handles
Proper risk profiling
No guaranteed returns
No stock tips to unassessed investors
No F&O trade inducement
No WhatsApp/Telegram tip groups
If any trainer/coach/guru violates these — stay away.
Conclusion: What Investors Should Learn
The ASTA/Avadhut Sathe case is a wake-up call.
Stock market education is important.
But unregistered advisories disguised as trainers are dangerous.
Always check SEBI registration before you trust anyone.
Real financial literacy protects investors from losing lakhs.
As an investor, your first line of defense is awareness, not shortcuts. As a SEBI-registered Investment Adviser, PVR Advisory encourages investors to follow data-driven, transparent and compliant wealth-building practices.
