Business · India Bureau
SEBI Orders Rs 11.5 Crore Penalty Against Avadhut Sathe Trading Academy
India's markets regulator has imposed significant penalties on Avadhut Sathe Trading Academy and its founder, directing them to refund over Rs 614 crore to aggrieved investors while barring market access.
LSN India ·
The Securities and Exchange Board of India (SEBI) has taken enforcement action against Avadhut Sathe Trading Academy and its promoter, levying a Rs 11.5 crore monetary penalty as part of a broader regulatory order. The action follows findings that the academy engaged in unauthorized operations in the securities market.
Under the directive, the trading academy and its founder have been ordered to refund Rs 546.17 crore to investors, along with an additional Rs 67.87 crore in interest accrued on the misappropriated funds. The combined reimbursement obligation amounts to approximately Rs 614 crore, reflecting the scope of investor losses identified by the regulator.
In a significant restriction on future operations, SEBI has barred both the academy and its founder from accessing the securities market. The prohibition extends to any involvement in trading, investment advisory services, or other regulated activities under the regulator's purview.
The action underscores SEBI's continued focus on protecting retail investors from unauthorized financial entities operating outside regulatory frameworks. Trading academies and similar entities have faced increased scrutiny from regulators in recent years over claims of unauthorized operations and misuse of investor funds.
Photo: SEBI Bhavan, the Securities and Exchange Board of India's head office in Mumbai, October 2006. Jimmy vikas via Wikimedia Commons (CC BY-SA 3.0).