SAT Grants Temporary Relief to Avadhut Sathe Trading Academy Amid SEBI Order Challenge<\/p>\n
The Securities Appellate Tribunal (SAT) has granted limited interim relief to Avadhut Sathe Trading Academy Private Limited (ASTAPL) by allowing the withdrawal of funds for basic operational expenses, even as the academy and its promoters challenge an interim ex-parte order passed by the Securities and Exchange Board of India (SEBI).<\/p>\n
The tribunal, after briefly hearing both sides, permitted ASTAPL to withdraw \u20b92.25 crore for one month to meet essential expenses required to run the academy. The order comes after the academy sought permission to access frozen bank accounts following SEBI\u2019s December 4 directive, which imposed sweeping restrictions on its operations.<\/p>\n
\u201cIn view of intervening vacations, we direct that appellant may be permitted to draw \u20b92.25 crore for this month,\u201d SAT observed in its order, adding that bank accounts to this extent would be defreezed. The tribunal has scheduled January 9 as the next date of hearing in the matter.<\/p>\n
ASTAPL, along with its promoters Avadhut Sathe and Gauri Avadhut Sathe, has approached SAT challenging SEBI\u2019s interim order that barred them from accessing the securities market. The regulator also restrained the academy from collecting course fees or conducting live trading sessions and directed the impounding of \u20b9601 crore, which SEBI termed as alleged unlawful gains.<\/p>\n
The interim order has effectively stalled the academy\u2019s operations, prompting ASTAPL to seek urgent relief from the appellate tribunal to ensure continuity of basic functions.<\/p>\n
While ASTAPL had requested permission to withdraw \u20b95.25 crore towards monthly expenses, SEBI opposed the quantum, flagging certain heads of expenditure as non-essential.<\/p>\n
Also Read : Equity Markets Bounce Back, Nifty Ends Above 25,900 After Four-Day Slide<\/a><\/p>\n During the hearing, SEBI pointed out that a substantial portion of the requested funds was earmarked for activities that could not be classified as basic operational necessities.<\/p>\n According to SEBI\u2019s submission:<\/p>\n \u20b92 crore was allocated for advertising expenses<\/p>\n<\/li>\n \u20b91 crore was earmarked for seminars<\/p>\n<\/li>\n These expenses, SEBI argued, were not essential for basic survival of the academy<\/p>\n<\/li>\n<\/ul>\n Taking note of these objections, SAT allowed a lower amount of \u20b92.25 crore, restricting the withdrawal strictly to immediate operational needs for one month.<\/p>\n Appearing on behalf of ASTAPL, Senior Advocate Janak Dwarkadas mounted a strong challenge to SEBI\u2019s interim directions, terming them excessively harsh and legally untenable.<\/p>\n \u201cThis is an appeal where the age-old proposition of law that you cannot pass a sentence without a trial has been completely destroyed,\u201d Dwarkadas argued, adding that the ex-parte order amounted to an \u201ceconomic death\u201d for the enterprise.<\/p>\n He told the tribunal,<\/p>\n \u201cThis order directs a party to deposit \u20b9546 crore in 15 days after freezing the bank account immediately. No hearing, no opportunity.\u201d<\/p>\n<\/blockquote>\n Dwarkadas further submitted that the academy was built over years, with Avadhut Sathe investing his personal earnings into a 12.5-acre campus, and that the sudden regulatory action had paralysed the business overnight.<\/p>\n Another key argument raised by ASTAPL was the alleged disproportionality of SEBI\u2019s action relative to the complaints received.<\/p>\n Dwarkadas told SAT that the regulator\u2019s conclusions were drawn from complaints by just 12 students out of a base of 3.5 lakh students, questioning the scale and severity of the interim measures.<\/p>\n The academy also disputed SEBI\u2019s financial findings, stating that the regulator\u2019s conclusions were based on incorrect data interpretations.<\/p>\n Countering the arguments, Senior Advocate Chetan Kapadia, appearing for SEBI, maintained that the regulator\u2019s action was neither sudden nor arbitrary.<\/p>\n \u201cThis was not out of the blue,\u201d Kapadia said, explaining that SEBI had issued advisories to the academy more than a year ago and conducted search and seizure operations in August 2025.<\/p>\n He added,<\/p>\n \u201cWe went to their premises and their houses. Everything has been seized. On the basis of the material seized from the institute, the order has been passed.\u201d<\/p>\n<\/blockquote>\n SEBI alleged that ASTAPL was effectively running unregistered investment advisory (IA) and research analyst (RA) services, while presenting itself as a stock market education platform.<\/p>\n SEBI\u2019s case hinges on its claim that teachers at the academy were providing actionable trading advice during training sessions.<\/p>\n Kapadia told the tribunal,<\/p>\n \u201cWhere teachers tell students what to buy and what to sell. How to buy and how to sell.\u201d<\/p>\n<\/blockquote>\n SEBI has argued that stock-specific recommendations, including targets, stop-losses and options strategies, were routinely shared during live sessions\u2014activities that require mandatory registration under SEBI regulations.<\/p>\n The regulator\u2019s findings are detailed in a 125-page interim order issued by Whole Time Member Kamlesh Chandra Varshney, which relied on video recordings, complaints and evidence gathered during search-and-seizure operations.<\/p>\n In its appeal, ASTAPL has challenged SEBI\u2019s conclusions on multiple grounds, including alleged discrepancies in financial data.<\/p>\n The academy contended that while SEBI claimed it incurred losses of nearly \u20b91.89 crore during FY25 and FY26, audited accounts reflect profits of approximately \u20b91.39 crore. According to the appellants, such inconsistencies undermine the basis of the interim directions.<\/p>\n ASTAPL has also objected to SEBI\u2019s reliance on WhatsApp chats between Avadhut Sathe and certain students. The academy argued that:<\/p>\n The chats were limited to mentorship batches<\/p>\n<\/li>\n They were not part of the advertised course structure<\/p>\n<\/li>\n They functioned as community interactions, not advisory services<\/p>\n<\/li>\n<\/ul>\n With SAT granting only temporary relief, the larger legal battle remains unresolved. The tribunal\u2019s decision to allow limited fund withdrawal ensures short-term operational continuity but does not dilute SEBI\u2019s interim restrictions.<\/p>\n The matter will now come up for further hearing on January 9, when SAT is expected to examine the merits of the appeal in greater detail.<\/p>\n For investors and market participants, the case underscores SEBI\u2019s increasing scrutiny of financial education platforms and the fine line between investor education and regulated advisory services. The outcome could have wider implications for similar entities operating in India\u2019s rapidly growing retail trading ecosystem.<\/p>\n SAT Grants Temporary Relief to Avadhut Sathe Trading Academy Amid SEBI Order Challenge The Securities Appellate Tribunal (SAT) has granted limited interim relief to Avadhut Sathe Trading Academy Private Limited (ASTAPL) by allowing the withdrawal of funds for basic operational expenses, even as the academy and its promoters challenge an interim ex-parte order passed by […]<\/p>\n","protected":false},"author":4,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-19093","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/19093","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=19093"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/19093\/revisions"}],"predecessor-version":[{"id":19095,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/19093\/revisions\/19095"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/19094"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=19093"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=19093"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=19093"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=19093"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Dispute Over Expense Claims Shapes Interim Relief<\/h2>\n
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Senior Counsel Argues SEBI Order Is \u201cEconomic Death\u201d for Academy<\/h2>\n
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Allegations Based on Limited Complaints, Says Academy<\/h2>\n
SEBI Defends Action, Cites Search, Seizure and Evidence<\/h2>\n
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Alleged Buy-Sell Calls at the Core of SEBI\u2019s Case<\/h2>\n
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Academy Disputes Findings on Financials and WhatsApp Chats<\/h2>\n
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What Lies Ahead as SAT Schedules Next Hearing<\/h2>\n
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