Nandini Pathak commented on SEBI’s recent crackdown on investor trainer Avadhut Sathe which served as a warning to others who may be offering unauthorized financial advice under the guise of market education. The Securities and Exchange Board of India (SEBI) has adopted a firm stance against alleged market manipulation, with its enforcement team recently raiding the Avadhut Sathe Trading Academy following complaints that the institution was potentially assisting operators in manipulating penny stocks.
Commenting on the development, Nandini shared her insights: “The line becomes blurred when examples or hypotheticals seem like tailored advice: ‘General educational sessions that name specific products can morph into advice, indicative messaging or promotional framing may cross into advisory territory. Disclaimers may help with exoneration, but do not give absolute immunity.” She further added, “There is no specific guidance which can objectively assist in classifying all activities squarely into education and advice,” and “Neither is it practicable to do so.”