India's capital markets regulator, the Securities and Exchange Board of India (Sebi), has taken decisive action against a prominent financial influencer, or 'finfluencer', for allegedly running a massive unregistered investment advisory scheme. On 4 December 2025, Sebi barred finfluencer Avadhut Sathe and his Avadhut Sathe Trading Academy (ASTA) from dealing in securities. The regulator also ordered the impounding of illegal gains worth ₹546.16 crore, earned prima facie by providing unregistered investment advice.
The Anatomy of a Financial Trap
The crackdown followed numerous complaints from participants of ASTA who reported substantial losses despite the academy's bold promises of "extraordinary returns." In its interim order, Sebi stated that its investigation found several claims in ASTA's advertisements to be misleading. The regulator noted that the academy provided investment advice without the necessary registration, violating securities laws. Between 2015 and 2025, ASTA collected approximately ₹600 crore in course fees from over 337,000 participants.
ASTA has denied Sebi's allegations. However, this case is far from an isolated incident. It highlights a recurring pattern where claims of guaranteed stock market riches evaporate, leaving investors in financial distress. The question remains: why do intelligent individuals repeatedly fall for such schemes?
The Psychology Behind the Chase for Quick Riches
Financial advisers and behavioural experts point to several powerful psychological biases that finfluencers exploit.
The 'Secret Sauce' Illusion: While long-term equity investing is a proven wealth-building strategy, many seek shortcuts. Finfluencers sell the dream of a hidden formula or secret technique for instant success. Tania Ahuja, founder of Sebi-registered Nobias Analyst India, explains, "They're selling a dream." ASTA's course titles like 'Get Edge Over Others (GEO)' and 'Secrets of Market Millionaires (SMM)' tapped directly into this desire.
Sebi's order exposed this illusion. The regulator analyzed claims in ASTA's promotional videos. In one video from October 2023, homemaker Lakshmi Sreenivasan claimed a ₹1 crore profit from Nifty Bank options. Sebi's data showed her actual profit was only ₹4.17 lakh. Another video from February featured Akash Ratnakar Warpe claiming to turn ₹1.8 lakh into ₹45 lakh. Sebi found he had actually incurred a loss of nearly ₹6 lakh.
The Temptation for Fast Success: Building wealth slowly lacks the allure of a "get rich quick" narrative. Vivek Rege, founder of V R Wealth Advisors, notes that people in an "extreme hurry" often jump into programmes without asking fundamental questions. A 45-year-old entrepreneur who enrolled in ASTA's GEO course during the 2021 pandemic exemplified this. After paying ₹72,000 for the GEO course, they later signed up for a mentorship programme costing around ₹7 lakh plus travel, believing it would make them a market expert. They later realized the strategies taught were available for free online, calling the promise of crores from a short course "an illusion."
How Social Proof and Bias Lead Investors Astray
Herd Mentality: People find comfort in crowds. The ASTA entrepreneur admitted relying on friends' references. ASTA's videos showcasing packed training sessions leveraged this "crowd comfort." Rege compares this to social media, where likes and comments influence our decisions.
Confirmation Bias: Once someone believes in a scheme, they seek only information that confirms that belief, ignoring red flags. "They want to hear what they want to hear," says Rege. This stops critical questioning. Sebi's investigation revealed ASTA published selective profitable trades of participants, creating a false narrative of consistent success, while analysis showed the featured trainers and participants were in net losses.
Key Lessons for Every Investor
This case serves as a critical warning. Ahuja's advice is simple: "If it’s too good to be true, then it’s not true." She urges investors to understand that everyone in finance is selling something, so due diligence is non-negotiable.
Advisers recommend a two-step verification process. First, always check the credentials of anyone offering financial advice. Sebi's order explicitly stated that Avadhut Sathe and ASTA were not registered with the regulator in any capacity, making their advice illegal. Second, be skeptical of social media testimonials. As Rege points out, people rarely post about their losses, creating a dangerously skewed perception of reality.
The Sebi action against Avadhut Sathe is a significant step toward cleaning up the unregulated finfluencer space. For investors, the path to wealth remains one of patience, disciplined investing through registered channels, and a keen awareness of the psychological games that can derail financial judgment.
