TLDR;
The video discusses the SEBI raid on Avadhut Sathe's academy, a financial education provider, due to allegations of illegal gains and securities market manipulation. It highlights the scale of Sathe's business, the accusations against him, and SEBI's intent to deter fake financial influencers. The video also touches on how such scams operate, potential future actions by SEBI, and provides a message for retail traders to be cautious and verify credentials before trusting financial advisors.
- SEBI raided Avadhut Sathe's academy over allegations of illegal gains and market manipulation.
- Sathe's business model involves selling various financial courses and mentorship programs.
- SEBI aims to deter fake financial influencers and protect retail investors.
- Retail traders are advised to verify credentials and be cautious of guaranteed returns.
Avadhut Sathe Case Intro [1:26]
The video begins by describing a raid conducted by SEBI (Securities and Exchange Board of India) on Avadhut Sathe's academy in Karjat, Maharashtra. The operation, led by SEBI's Deputy General Manager, involved a search and seizure that lasted two days, during which devices, records, and trading data were confiscated. This action was not a routine notice but a planned operation based on allegations of illegal gains ranging from ₹400 to ₹500 crores. The presenter emphasizes the anxiety this situation must be causing fake influencers and the pain inflicted on those who invested in Sathe's courses.
Business of Avadhut Sathe [1:27]
Avadhut Sathe offers various financial courses and mentorship programs, including "Jio Get Edge Over Others" (₹85,000 for four months), "Jio Paranormal" (₹7,000), "Jio Plus" (₹2 lakh), and mentorship (₹5 lakh). Official numbers from the Ministry of Corporate Affairs website show a significant increase in earnings over the years: ₹1.74 crore in 2020-21, ₹37 crores in 2021-22, ₹84 crores in 2022-23, and ₹115 crores in 2023-24. An estimated ₹200 crores is projected for 2024-25.
SEBI Allegations on Avadhut Sathe [2:27]
The problem isn't in teaching or training, but in how FOMO (fear of missing out) is created and people's minds are manipulated. Avadhut Sathe is accused of colluding with penny stock operators, pushing these stocks to his students, and thereby boosting their value. These stocks, often valued at less than ₹10, are promoted to students, and Sathe allegedly profits through front-running and pump-and-dump schemes. Circular trading is also under investigation, potentially escalating the scale of the scam.
SEBI's plan to stop Fake Finfluencerns? [3:20]
Avadhut Sathe is accused of using his students as scapegoats. SEBI's senior member, Kamlesh Vasneji, mentioned targeting a big name in the industry to create deterrence. While SEBI typically issues show cause notices for violations, the urgency in this case necessitated a raid to secure evidence and prevent tampering. Section 11C of SEBI regulations allows such search and seizure operations, which require court permissions and adherence to norms.
SEBI's signal to Fake Finfluencerns [4:20]
SEBI aims to send a strong message to the market by acting on big names. Marketing tips, live calls, or assured returns without registration is wrong. Providing advice or handling accounts under the guise of education is also wrong. Glamorizing the youth and luring them into the market without proper guidance is wrong. The goal is to address the disrespect, mental stress, and ruined lives caused by such acts. SEBI wants to set an example to deter others, emphasizing that names and brands will collapse, and individuals will become synonymous with fraud.
How Scammers sell such courses? [5:51]
The video describes a pattern used by such scammers: first, they capture trust by showcasing years of experience and building a community. They create scarcity and urgency by claiming limited seats and increasing fees. Training is provided through classrooms, live chats on Telegram, and YouTube, using specific scripts and examples. When questioned about their methods, they claim it's for educational purposes only. The common man is unaware of potential collusion with company owners to manipulate stock prices and carry out front-running scams.
Next Steps SEBI might do [7:07]
If SEBI finds evidence of collusion or front-running, the investigation intensifies. The strategy now focuses on quality hits to send a message to the industry. Following the raid, an order will likely impose restrictions, suspensions, disgorgement (returning earned amounts with 12-18% interest), and monetary penalties (potentially 30-40% on top). In high-profile cases, significant PR efforts are observed. If the alleged scam of ₹400-500 crore is sustained, heavy disclosure, interest charges, and substantial penalties are expected to set a strong example.
Message for Retail Traders [8:31]
The biggest asset in the market is trust, and those who sell it should be stopped. While raids and orders are important, retail traders must insist on verification, check SEBI licenses, and not blindly trust license holders. Guaranteed returns, profit screenshots, and account handling promises should be avoided, especially those promising overnight success. Be the owner of your own risk, as the loss is yours, not the influencer's. If you are a victim, document your case, email, keep receipts, and complain to the Chat Lock Investor Helpline.
Conclusion [9:29]
The regulator becomes strong when your voice is on record. SEBI should take this case to the end and send a systematic message. Scammers should be scared, and if they are not, their time will come. The video concludes by noting that documentation, software proofs, hardware, computers, laptops, and mobiles have been confiscated from Sathe's house. The names of involved companies will be revealed, and only time will tell the extent of the scam. The key takeaway is to be aware and ensure you are going in the right direction.