SAT Grants Interim Relief to Avadhut Sathe, Allows Limited Access to Frozen Accounts

The Securities Appellate Tribunal has granted interim relief to Pune-based trading influencer Avadhut Sathe, permitting limited access to frozen bank accounts to meet essential operational expenses.

The relief comes after Sathe challenged an ex-parte interim order issued by market regulator Securities and Exchange Board of India, which had directed the freezing of accounts linked to Avadhut Sathe Trading Academy Private Limited (ASTAPL), Sathe himself, and Gauri Avadhut Sathe.

After hearing arguments from both sides, SAT allowed the appellants to withdraw up to ₹2.25 crore for the current month to cover essential operational costs. The tribunal clarified that the bank accounts would remain defreezed only to this limited extent.

The tribunal also directed both parties to maintain status quo and scheduled the next hearing for January 9, when the matter will be examined in greater detail.

During the proceedings, ASTAPL sought permission to withdraw ₹5.25 crore per month, citing operational expenses. SEBI objected to the request, highlighting that a significant portion of the claimed amount was earmarked for advertising and seminars. The regulator argued that such expenditures could not be classified as essential, especially given the nature of the allegations.

SEBI has accused the academy of offering unregistered investment advisory and research analyst services while portraying itself as a stock market education platform. According to the regulator, the activities violated existing securities laws governing market intermediaries.

Avadhut Sathe has been under regulatory scrutiny for several months. In August, SEBI conducted a search-and-seizure operation at his Karjat-based trading academy as part of a broader crackdown on financial influencers allegedly providing market advice without mandatory registration.

While Sathe has maintained that his operations are educational in nature, SEBI has barred the academy from market-related activities and ordered the impounding of funds linked to the alleged violations. The case is now set for further hearing before SAT in January.