SAT to hear Avadhut Sathe appeal against Sebi's interim order on Jan 9

The Securities Appellate Tribunal (SAT) will hear on January 9, 2026, an appeal filed by Avadhut Sathe Trading Academy (ASTA) challenging a Securities and Exchange Board of India (Sebi) order that directed the impounding of Rs 546 crore and barred the entity from the securities market.

What did Sebi allege in its interim order?

In an interim order dated December 4, Sebi alleged that ASTA was providing unregistered investment advisory and research analyst services under the guise of “education” and “training”.

What did SAT direct ahead of the hearing?

The tribunal said the matter would be taken up after the court reopens following the vacation, and that the status quo would be maintained until then. It also allowed partial de-freezing of the academy’s bank accounts, permitting withdrawals of up to Rs 2.25 crore to meet monthly expenses.

“In view of the intervening vacations, we direct that the appellant may be permitted to draw Rs 2.25 crore for this month,” noted Justice P S Dinesh Kumar in the order.

SAT granted Sebi six weeks to file its reply in the matter.

What did the academy seek and what did Sebi oppose?

The academy had sought a stay on Sebi’s directions and requested de-freezing of accounts to the extent of Rs 5.25 crore per month. Sebi opposed the plea, arguing that a significant portion of the claimed expenses — around Rs 2 crore for advertisements and Rs 1 crore for seminars — were not immediate or essential.

Appearing for the academy, senior counsel Janak Dwarkadas said the Sebi order was served on December 11 and described it as “out of the blue”, contending that it amounted to an “economic death” of the enterprise based on a prima facie finding. He also argued that Sebi had not granted the academy a hearing before passing the order.

Sebi, however, maintained that it had issued an administrative warning to the academy in March 2024 and that the interim order was based on evidence gathered during search and seizure operations conducted in August 2025.

What did Sebi say about the alleged conduct and directions?

In its ex parte interim order, the regulator said that despite the earlier warning over selective display of profitable trades and misrepresentation, the entities continued to publish “misleading videos”, exaggerated testimonials and social media content promising extraordinary returns, while many participants allegedly suffered substantial losses.

Sebi has directed disgorgement of Rs 601 crore and imposed a market ban on founder Avadhut Sathe. It has also ordered the academy to cease and desist from using live market data in its programmes.