SEBI Takes Major Action Against ASTPL and Founder, Orders ₹546 Crore Refund and Imposes ₹11.5 Crore Fine

New Delhi, October 24 (Daily Kiran) : The Securities and Exchange Board of India (SEBI) has taken significant action against Aadhut Sathe Trading Academy Private Limited (ASTPL) and its founder, Aadhut Sathe, ordering the company to refund ₹546.17 crore to investors. This decision comes after SEBI discovered that ASTPL and its founder were conducting investment advisory and research analyst activities without the necessary registration.

In its final order, SEBI has prohibited Aadhut Sathe and his company from participating in the securities market for two years or until compliance with the refund directives, whichever is longer. Additionally, Aadhut Sathe has been barred from the market for six months.

SEBI has mandated that the full refund amount of ₹546.17 crore be deposited into a designated bank account within five months of the order. Furthermore, ASTPL must publish advertisements in English, Hindi, and a widely circulated local language newspaper within 30 days to inform investors about the refund process.

The regulator clarified that refunds to investors will only be processed through electronic fund transfers or other banking methods to ensure a complete record of payments and confirm the identities of beneficiaries.

Should there be any remaining funds after all claimants are paid, the surplus must be handed over to SEBI. This amount will be held in an escrow account for one year to facilitate payments to eligible investors and complainants. Any leftover funds after this period will be transferred to the Investor Protection and Education Fund (IPEF).

In addition to the refunds, SEBI has imposed a total fine of ₹11.5 crore on ASTPL, Aadhut Sathe, and Gauri Sathe. This includes a penalty of ₹6 crore on the company, ₹4 crore on Aadhut Sathe, and ₹1.5 crore on Gauri Sathe. The fines must be paid within 45 days of receiving the order.

SEBI’s order also stipulates that until the full amount is deposited, debit transactions from the bank accounts of the involved parties will be restricted.

This action follows an investigation by SEBI, which found that ASTPL and its founder were not limited to providing education about the stock market, but were also advising investors on specific stock purchases and sales. The investigation revealed that the company was allegedly providing guidance on entry and exit levels, stop-loss measures, and stock price directions without the required regulatory registration.

SEBI also noted that ASTPL was prominently showcasing selective profitable trades in its promotional material, enticing participants with claims of high returns. Despite receiving an administrative warning in March 2024, the company did not alter its activities, prompting SEBI to take stringent action.