Securities Appellate Tribunal has allowed the Avadhut Sathe Trading Academy Private Limited to withdraw funds for basic expenses to run the academy. Avadhut Sathe Trading Academy Private Limited (ASTAPL), Avadhut Sathe and Gauri Avadhut Sathe had challenged the interim SEBI ex-parte order. After hearing both sides very briefly today SAT allowed for an interim arrangement for expenses to run the academy. SAT in its order stated, “In view of intervening vacations, we direct that appellant may be permitted to draw Rs 2.25 crore for this month." Bank accounts to that extent will be defreezed. After providing for interim arrangement, SAT has fixed January 9 as next date of hearing in the case.
ASTAPL sought for permission to withdraw Rs 5.25 crore as monthly expenses but SEBI side pointed that out of that Rs 2 crore is for advertisement and 1 crore for seminars expenses, which may not be considered necessary. SEBI had accused the academy of running unregistered investment advisory (IA) and research analyst (RA) services while projecting itself as a stock market education platform
Janak Dwarkadas, Senior Advocate, appearing for ASTAPL argued that SEBI’s order is harsh and a death knell for his enterprise which he built since 2008 on 12.5-acre land with his earnings invested there. He argued, “This is an appeal where the age-old proposition of law that you cannot pass a sentence without a trial has been completely destroyed and obliterated by passing an ex-parte order which directs a party to deposit Rs 546 crores in 15 days after freezing the bank account immediately”.
Dwarkadas further stated, “Suddenly out of the blue, comes this order, which puts an economic death to my entire enterprise on prima facie finding of guilt. No hearing, no opportunity”. He said, the allegation on which SEBI has passed the order is from 12 students out of 3.5 lakhs.
On behalf of SEBI, Senior Advocate, Chetan Kapadia, countered that the action was not sudden but based on evidence and observations. He said, “they were issued an advisory more than one year back and there was a search and seizure order. We went to their premises, their houses in August 2025. Everything has been seized. On the basis of the material seized from the institute the order has been passed. He further elaborated about the activities at academy, “Where teachers tell students what to buy and what to sell. How to buy and how to sell”. Emphasising that buy and sell calls were provided in training which was against SEBI laws as entity was not registered either as investment advisor or research analyst.
In its appeal, ASTAPL had sought to overturn SEBI’s December 4 order that barred the academy and its promoters from accessing the securities market, restrained them from collecting course fees or conducting live trading sessions, and directed the impounding of Rs 601 crore as alleged unlawful gains.
The ASTAPL in its petition argued that SEBI’s conclusions are based on incorrect assessment of data, particularly student trading results used to allege misleading testimonials. ASTAPL has also challenged SEBI’s finding that the company suffered losses of nearly Rs 1.89 crore during FY25 and FY26, stating that audited figures show profits of approximately Rs 1.39 crore. According to the appellants, such discrepancies weaken the foundation of the interim directions.
Another ground of appeal relates to SEBI’s reliance on WhatsApp chats between Avadhut Sathe and certain students. The appeal maintains that these chats were limited to mentorship batches, were not part of the advertised course structure, and functioned only as community interactions rather than advisory services.
SEBI, however, in its 125-page order passed by Whole Time Member Kamlesh Chandra Varshney, relied on video recordings, complaints and search-and-seizure operations conducted in August 2025 to conclude that stock-specific recommendations, targets, stop-losses and options strategies were routinely shared during live sessions.
Avdhut Sathe Trading Academy in a statement issued after the hearing stated, " Based on the proceedings today, the honourable Tribunal has passed an ad-interim order permitting ASTA to continue the operations. We have full faith in the judiciary and are optimistic that in the next hearing, all our prayers will be accepted. We are confident, justice shall prevail. We stay committed to our student community, nurturing an ecosystem of educated, skilled traders & investors".
Moneycontrol was the first to report that SEBI has conducted search and seizure operations at Avdhut Sathe Trading Academy in Karjat in August.
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