SEBI conducts two-day raid at trading guru Avadhut Sathe's academy in Karjat

In a crackdown on finfluencers, the Securities and Exchange Board of India (SEBI) conducted search and seizure operations at the academy of trade and market influencer Avadhut Sathe in Karjat, Maharashtra, on Wednesday, August 20, as reported by Moneycontrol.

The officials, led by SEBI deputy general manager, went to Sathe's place in the early hours of August 20.

Finfluencer raided by SEBI 

Reportedly, he has been under SEBI's scanner for months and the search and seizure operation had been pre-planned meticulously, Moneycontrol reported, citing a source.

The operation was carried on till Thursday, August 21, evening.

Trading data and digital devices from the academy have been seized for forensic analysis.

Sources also told Moneycontrol that the regulator had sought court approvals in advance, conducted a reconnaissance, and tracked movement patterns before the strike.

Sathe runs the Karjat Trading Academy, which has a wide following among retail investors. His YouTube channel has around 9.36 lakh subscribers.

Later, at a FICCI event, SEBI's whole-time member Kamlesh Chandra Varshney confirmed to CNBC-TV18 that the regulator had carried out "a big search operation on a big name in this industry."

While he did not name Sathe, he said the action was taken to send a signal that the regulator is intensifying its enforcement against influencers who misguide retail traders.

Varshney said that giving stock tips, using live trading data, or promising guaranteed profits in fintech classes without SEBI registration is prohibited. With the raid, they want to warn such influencers that SEBI is on the watch and ready to take strong action if needed.

“If you are misguiding the youth in the name of education, promising guaranteed returns, giving calls in the classroom, using live data to trade you cannot do that without Sebi registration,” Varshney said. “The idea is to create fear in the market that there is a regulator which is watching you.”

According to reports, SEBI has received complaints that certain trading academies collude with market operators to push penny stocks, entwining them into classroom examples of chart patterns and strategies to drive up prices.

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