SEBI conducted its largest operation yet on the Karjat-based trading academy of the renowned "trading guru" Avadhut Sathe, carrying out a two-day search and seizure operation. During this operation, digital devices and trading data were confiscated. According to sources, this raid, which followed months of preparation and court approval, clearly indicates that SEBI is now cracking down on finfluencers.
SEBI Raids: Taking the biggest action against finfluencers to date, SEBI raided the Karjat-based trading academy of "trading guru" Avadhut Sathe from 6:30 AM on August 20th to the evening of August 21st. Despite heavy rains, the operation continued, and the team seized digital devices and trading data. Sources say that this operation was carried out with court approval after months of preparation, even tracking Sathe's movements. SEBI's message is clear: strict action will be taken against finfluencers who mislead investors in the name of education without registration.
SEBI Operation Even in Heavy Rain
According to sources, preparations for this operation had been underway for several months. SEBI had already obtained approval from the court and had been monitoring Sathe's activities for a long time. Even his movement patterns were tracked. Despite heavy rain, the SEBI team arrived at the location and seized digital devices along with trading data.
SEBI has been receiving complaints for a long time that some trading academies are jointly promoting penny stocks. These stocks are included as examples of chart patterns and strategies in classrooms. This process artificially increases the prices of stocks, and retail investors get trapped in losses. Sources claim that Avadhut Sathe's trading academy is also facing similar allegations.
Indication of Strictness on Finfluencers
SEBI's action is being seen as a b message directly against those finfluencers who are misleading investors in the name of education. Recently, at an event, SEBI's Whole-Time Member Kamlesh Chandra Varshney, without naming anyone, said that if someone is luring young people with guaranteed returns in the name of education, making calls in classrooms, and trading with live data, then this is not possible without SEBI registration. His statement is now being directly linked to this action.
Popularity on Social Media
Avadhut Sathe is known on social media as a trading guru and market expert. His YouTube channel has more than 936,000 subscribers. His Karjat trading academy is considered very popular, especially among new and small investors. Many young people have been taking the help of his videos and courses to learn about the stock market.
No formal reaction has come from Avadhut Sathe's team after the SEBI raid. However, the auto-reply sent to his email only read, "Thank you for your interest, we are happy that you have shown interest in our services." This response makes it clear that his team is currently avoiding making any direct statement on the situation.
Alert for Investors
Market experts believe that this raid is a major warning not only for Avadhut Sathe but also for other finfluencers. SEBI wants to make it clear that no one can give investment advice or trading calls without registration. Retail investors lose confidence due to such shortcuts and illegal methods, and they have to bear heavy losses.
Long Operation
During this two-day operation, the SEBI team collected not only digital devices but also data related to classrooms and information related to online transactions. It is being said that the team has found many important pieces of evidence based on which further action will be decided.
In the last few years, the influence of finfluencers in the stock market has increased rapidly. Millions of investors are trusting their words through social media and YouTube. Many times, without any regulatory oversight, these people influence a large number of retail investors. This SEBI raid is being seen as a major step in curbing this culture.
