SEBI’s 36-hour raid on Avadhut Sathe’s Karjat Trading Academy has exposed serious penny stock manipulation allegations. The August 20-21, 2025 search operation seized digital evidence of illegal advisory services disguised as education, marking India’s biggest finfluencer crackdown.
Avadhut Sathe SEBI Raid Exposed: The 36-Hour Karjat Operation That Shook Trading Gurus
The Indian stock market witnessed a thunderclap on 20th August 2025 when the Avadhut Sathe SEBI raid shook the world of trading education. What was initially presented as a “financial education empire” suddenly turned into a massive regulatory crackdown. This 36-hour non-stop raid conducted at Karjat exposed not only Avadhut Sathe’s alleged involvement in penny stock manipulation but also marked a turning point in India’s trading academy ecosystem.
But what exactly happened during those 36 hours? And why does this matter to every trading student in India? Let’s break it down.
The Dawn Raid in Karjat
On a rainy morning in Mumbai’s worst downpour of 2025, SEBI officials reached Avadhut Sathe’s Karjat residence at 6:30 AM. According to reports (Economic Times), this was not a random visit. SEBI had been tracking Sathe since 2023 after receiving multiple complaints from students and whistleblowers.
Officials came with court approvals, surveillance notes, and a detailed strategy. The Avadhut Sathe SEBI raid was no less than a cinematic operation—36 hours of non-stop enforcement, laptops seized, WhatsApp groups investigated, and truckloads of data carried out for forensic analysis.
Core Allegations: Penny Stock Manipulation
At the heart of the Avadhut Sathe SEBI raid lies one dangerous allegation—penny stock manipulation disguised as education.
Here’s how the scheme allegedly worked:
Penny stocks were showcased in classrooms as “technical analysis examples”.
Students were nudged to buy these low-volume shares as part of practical learning.
With hundreds of students trading at once, prices artificially inflated.
Operators could then dump these inflated stocks, leaving retail traders in loss.
According to Moneycontrol, this wasn’t just teaching—it was orchestrated demand creation hidden under the mask of education.
Why SEBI Cracked Down Hard
SEBI Whole-Time Member Kamlesh Chandra Varshney made the regulator’s stance clear:
“If you are misguiding the youth in the name of education, promising guaranteed returns, giving calls in the classroom, or using live data to trade… you cannot do that without SEBI registration.”
This means any academy offering stock tips or calls—directly or indirectly—is breaking the law. The Avadhut Sathe SEBI raid is a strong signal to all trading gurus that India’s financial markets will no longer tolerate unregistered advisory disguised as training.
Official updates can also be tracked directly on the SEBI website.
The Student Fallout: Why Learners Are at Risk
For the 18,000+ students who trained under Avadhut Sathe’s network, the risks are now real:
Financial losses from penny stock calls presented as learning tools.
Legal implications if they unknowingly participated in manipulative schemes.
Invalid certifications if the academy faces suspension.
Reputation risks in the finance industry by being linked to a raided entity.
Red Flags Every Trading Student Must Notice
The Avadhut Sathe SEBI raid has exposed a pattern of warning signs that every student must recognize before enrolling anywhere:
Celebrity-style events with dance, drama, and nationalism rather than pure trading content.
Promises of guaranteed returns, which no ethical institute can ever make.
Private WhatsApp groups for stock tips hidden under “student community”.
Vague fee structures with hidden charges.
No SEBI registration or regulatory transparency.
If you notice even two of these, it’s time to step back.
How This Raid Will Reshape Trading Education
The Avadhut Sathe SEBI raid is not just about one man—it’s about setting the tone for the entire industry. Some key shifts ahead:
End of “guru culture” where personality overshadows curriculum.
Mandatory SEBI compliance for any stock market-related teaching.
Social media financial influencers under tighter regulation.
Student-first education replacing hype-based marketing.
As Motilal Oswal reported, this is SEBI’s broader war on the unchecked finfluencer economy.
The Safe Alternative: Trading Shastra Academy
In a post-raid environment, students now need to separate hype-driven academies from ethical, compliant education providers. This is where Trading Shastra Academy sets a benchmark:
No SEBI complaints, no advisory disguise—we focus purely on education.
Real trading capital provided (₹10–50 lakh) to students for practical learning.
100% loss protection so no student faces financial harm.
Algo access worth ₹12,000/month FREE.
NISM exam prep & fees included.
Transparent documentation with zero hidden charges.
For example, our Supreme Trader Program B (₹1,04,000) provides ₹10 lakh real capital, 3 months of training, and 6 months internship with stipend. No hype, no hidden traps—just genuine education.
You can also explore our other programs here:
Student Checklist Before Enrolling Anywhere
To avoid being trapped in the next Avadhut Sathe SEBI raid type scandal, every student must check:
SEBI registration for any advisory claim.
Transparent fee structure without hidden costs.
Alumni success stories with verifiable proof.
Regulatory clean history.
No promises of guaranteed returns.
Final Word: The Raid That Changed Everything
The Avadhut Sathe SEBI raid has set a precedent. It exposed how penny stock manipulation can be hidden in classrooms, how guru culture misleads thousands, and why regulatory compliance is non-negotiable.
For students, the choice is now simple: follow the hype and risk financial disaster, or join transparent academies like Trading Shastra Academy that focus on education, compliance, and student safety.
📌 Institute Info
Trading Shastra Academy
B-11, Sector 2, Noida – 201301
Website: www.tradingshastra.com
Email: info@tradingshastra.com
Phone: +91 9717333285
Disclaimer: This blog is for educational purposes only. Stock market investments are subject to risks. Please do thorough research before investing.