SEBI Orders ₹546 Cr Refund by Avadhut Sathe Academy; Peer-Reviewed CA to Certify Compliance

SEBI has directed Avadhut Sathe Trading Academy and its founder to refund ₹546.17 crore collected through unregistered investment advisory services, with refund completion to be certified by a peer-reviewed Chartered Accountant. Under its final order dated 23 October 2026, SEBI requires a CA-certified compliance report within 30 days of completing refunds, along with additional directions concerning interest, penalties and investor protection.

The Securities and Exchange Board of India (SEBI) has assigned an important certification role to a peer-reviewed Chartered Accountant in its ₹546.17 crore refund order against Avadhut Sathe Trading Academy Private Limited and its founder, Avadhut Dinkar Sathe.

In its final order dated 23 October 2026, SEBI directed the academy and its founder to jointly and severally refund ₹546.17 crore collected from investors and participants through unregistered investment advisory and research analyst activities. The refunds must be completed within five months from receipt of the order.

Peer-Reviewed CA to Certify Refund Compliance

Under Paragraph 537.6 of the SEBI order, the academy and its founder must submit a refund-completion report to SEBI's Market Intermediaries Regulation and Supervision Department within 30 days of completing the repayments.

SEBI has specifically directed that the report must be duly certified by a peer-reviewed Chartered Accountant.

The order also requires refunds to be made through electronic fund transfers or other appropriate banking channels, with audit trails identifying the beneficiaries of repayments.

Additionally, SEBI has directed the deposit of ₹67.87 crore as interest into its Investor Protection and Education Fund (IPEF).

SEBI Imposes ₹11.5 Crore Penalties

Under Paragraphs 538 and 539, SEBI has imposed monetary penalties totalling ₹11.5 crore on the academy, Avadhut Sathe and Gouri Avadhut Sathe, payable within 45 days from receipt of the order.

The direction requiring certification by a peer-reviewed Chartered Accountant highlights the professional responsibility involved in independently certifying compliance with significant regulatory refund directions.

Reference: SEBI Final Order dated 23 October 2026, Paragraphs 537.2, 537.4, 537.6, 538 and 539.

Source: CA Sansaar