The Securities Appellate Tribunal (SAT) has given a temporary reprieve to Avadhut Sathe Training Academy (ASTA), allowing it to continue operations. This move comes after the academy was barred by the Securities and Exchange Board of India (Sebi) from offering unregistered investment advisory and research analyst services.
Sebi had ordered ASTA to deposit a sum of Rs 546.16 crores, alleging that it runs an unregistered investment advisory and research analysis service. The academy approached the appellate tribunal, arguing that Sebi passed a sentence without a trial by not giving an opportunity for a hearing before passing the ex-parte order.
The two-member bench headed by Justice P.S. Dinesh Kumar has listed the case for the next hearing on January 9, 2026. Meanwhile, the tribunal has directed Sebi to instruct banks to allow ASTA to draw Rs 2.25 crores for this month’s expenditure. This decision provides temporary relief to the academy and its 3.5 lakh students.
Sebi alleged that ASTA and its founder, Avadhut Sathe, have been providing investment advisory and research analyst services without the requisite registration certificate. The regulator claimed that they collected Rs 601 crore from more than 3.37 lakh investors and recklessly misled them by selectively showcasing profitable trades.
The case highlights the importance of regulatory compliance in the financial market. It also raises questions about the role of unregistered investment advisory services and their impact on investors. As the case unfolds, it will be important to watch how Sebi and the tribunal balance the need for regulation with the need for innovation and accessibility in the financial market.
ASTA has expressed optimism that justice will prevail in the next hearing. The academy has stated that it has full faith in the judiciary and is committed to its student community. As the case progresses, it will be important to monitor the developments and their implications for the financial market and investors.
Remember, this is a developing story, and it's essential to do your own research and stay informed about the latest developments. The case of Avadhut Sathe's Trading Academy serves as a reminder of the importance of regulatory compliance and the need for transparency in the financial market.
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