SEBI Cracks Down On Finfluencers: Avadhut Sathe’s Karjat Academy Raided Over Unauthorised Trading Activities

In a major enforcement move, the Securities and Exchange Board of India (SEBI) recently carried out a two-day search at the Karjat-based academy of trading influencer Avadhut Sathe.

The action is part of SEBI’s broader crackdown on financial influencers allegedly operating without regulatory approval and misleading retail investors.

Search at Karjat Academy

The coordinated operation began on August 20, 2025, and continued until August 21, 2025. SEBI’s enforcement team, led by a deputy general manager, conducted search and seizure actions at the academy.

Digital devices, trading data, and other materials were confiscated and are now undergoing forensic investigation.

Allegations of Stock Manipulation

The search follows complaints that some trading academies might be working in collusion with market operators to promote penny stocks.

By incorporating such stocks into live trading sessions or chart analysis during classes, these academies could be influencing price movements without proper registration or disclosures, in violation of SEBI regulations.

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Regulator’s Warning

SEBI whole-time member Kamlesh Chandra Varshney, speaking at a public forum, warned that misleading the youth in the name of education will attract strict regulatory action.

Without naming Sathe directly, he stressed that using classrooms to issue stock tips or demonstrate live trades without SEBI accreditation goes against fair market practices and breaches existing rules.

Wide Reach of Sathe’s Academy

Avadhut Sathe commands a large online following, with over 9.3 lakh subscribers on YouTube, and his Karjat Academy is well-known among retail traders seeking market education.

However, SEBI’s action makes clear that popularity and online reach cannot substitute for regulatory compliance, particularly when financial advice has the potential to move markets.

SEBI Approved New Rules For FinFluencers

In June this year, capital markets regulator SEBI approved new rules to regulate unregistered financial influencers, or finfluencers, amid concerns that they often give biased or misleading advice while working on commission-based models.

Along with this, SEBI also decided to introduce a fixed price process for delisting frequently traded shares and brought in a delisting framework for Investment and Holding Companies (IHCs).

The regulator further approved a proposal to remove financial penalties on MDs and CTOs of exchanges and other market infrastructure institutions in cases of technical glitches.