SAT allows ASTA to operate, use accounts for expenses ahead of January 9 hearing

The Securities Appellate Tribunal (SAT) on Friday (December 19) cleared key hurdles for Avadhut Sathe Trading Academy Pvt Ltd (ASTAPL), allowing the academy’s operations to continue after expressing shock over the Securities and Exchange Board of India’s (SEBI) order directing Avadhut Sathe and the entity to deposit ₹546 crore.

The tribunal, presided over by Justice PS Dinesh Kumar, passed an ad-interim order maintaining the status quo and permitting the appellants to operate their bank and demat accounts to ensure the smooth functioning of the academy.

SAT was hearing an appeal filed by ASTAPL, Avadhut Sathe and his wife, Gouri Sathe, challenging SEBI’s December 4 order that barred them from trading, collecting course fees and directed them to deposit ₹546 crore. SEBI, in its order, had accused the academy of providing investment advice and research analyst services under the guise of running a trading academy.

The appellants were represented by senior counsel Janak Dwarkadas, along with senior counsel Gaurav Joshi and C K Legal. Dwarkadas told the tribunal that SEBI had “passed a sentence without a trial” by issuing the order without granting an opportunity of hearing.

Also Read: Avadhut Sathe Trading Academy clarifies focus remains on training, not advisory, amid SEBI action

He expressed anguish over SEBI passing an ex parte order directing the deposit of ₹546 crore within 15 days after freezing bank and demat accounts. Dwarkadas pointed out that while ASTA had imparted training to 3.5 lakh students, SEBI relied on complaints from only 12 students. He argued that SEBI’s “trigger happy” policy stood exposed, citing an earlier judgment of the tribunal’s predecessor bench, and alleged violations of Articles 14, 19 and 21 of the Indian Constitution.

Dwarkadas also contended that SEBI built its entire investigation around ASTA’s use of real-time data while imparting education. “How can you teach a child to swim without entering water?” he asked the bench.

Raising concerns over the violation of principles of natural justice, the senior counsel said that while the SEBI Act allows 45 days to file an appeal, ASTA was given only 21 days to reply and 15 days to deposit ₹546 crore, even as accounts were immediately frozen.

“My account has been frozen, and I have been asked to deposit ₹546 crores. Are we seriously living in a democratic society or living in a banana republic?” Dwarkadas remarked, while seeking a stay on the order.

Also Read: Avdhut Sathe SEBI Order: From capital markets ban to ₹546 crore impounding, here are key highlights

He further informed the bench that ASTA had monthly expenses of ₹5.25 crore, and freezing of bank accounts made it impossible to operate. SEBI’s counsel countered this by stating that around ₹3 crore out of the ₹5.25 crore was towards advertisement and seminar expenses.

After hearing both sides, the bench noted that December 19 was the last working day before the tribunal closed for vacation. To this, Dwarkadas responded, “Today may be last day of the court. But I am already dead. I am 8 feet under. Today is the last day of my life.”

The tribunal subsequently passed an ad-interim order allowing the appellants to operate their accounts to meet the monthly expenses required to run the academy. “We are also surprised that prima facie SEBI wants a deposit of ₹546 crores after shutting down everything,” the bench observed. The matter is scheduled to be heard next on January 9, 2026.

In a statement following the proceedings on December 19, ASTA said the tribunal had permitted it to continue operations. “We have full faith in the judiciary and are optimistic that in the next hearing, all our prayers will be accepted. We are confident that justice shall prevail. We stay committed to our student community, nurturing an ecosystem of educated, skilled traders & investors,” the academy said.