NEW DELHI: Markets regulator SEBI has ordered Avadhut Sathe Trading Academy Private Limited (ASTPL) and its founder, Avadhut Sathe, to refund Rs 546.17 crore collected from investors and participants for unregistered investment‑advisory and research‑analyst activities.

In a final order, SEBI barred the perpetrators from accessing the securities markets for two years or until they comply with the refund direction, whichever is later. Gouri Avadhut Sathe, a director of the academy, has been barred from the markets for six months.

The regulator directed the academy and Sathe to deposit the refund amount in a dedicated bank account within five months of receiving the order and to publish notices in English, Hindi and a widely circulated local language newspaper within 30 days explaining how investors can claim refunds.

The repayments to the investors shall be "effected only through electronic fund transfers" or through any other appropriate banking channels with audit trails to identify the beneficiaries of repayments, according to the SEBI order.

Any balance remaining after refunds must be handed to SEBI and held in escrow for one year for distribution to clients and complainants, with remaining amount to be transferred to the Investor Protection and Education Fund (IPEF).

SEBI has also imposed a total penalty of Rs 11.5 crore on the academy, Avadhut Sathe and Gouri Sathe, which must be paid within 45 days of receipt of the order. The academy faces a penalty of Rs 6 crore, Avadhut Sathe Rs 4 crore and Gouri Sathe Rs 1.5 crore.

“The bank accounts of the Noticees shall be frozen for debits till the time they deposit the entire amount in the dedicated bank account and IPEF maintained by SEBI,” the order said.

The order followed an investigation after SEBI felt that the academy and its founder went beyond providing stock-market education and offered stock-specific advice and trading calls.

The academy allegedly provided entry and exit targets, stop-loss levels and price-direction forecasts without the required registrations.

The regulator found that the academy's promotional material selectively showcased profitable trades and claimed high returns to participants even after an administrative warning issued in March 2024.