Market Regulator- The Securities and Exchange Board of India (SEBI) has conducted a big search operation against Avadhoot Sathe, a large financial influencer in Mumbai. Sathe’s YouTube channel has reached 9,36,000 subscribers. Where they share market analysis, chart patterns and investment strategies. Kamlesh Varshney, the full time member of SEBI, also shared its information at a FICCI program on Thursday. However, he did not take the name of Sathe directly.
Who is Avadhoot Sathe
Avadhoot Sathe is a well-known market influencer and trading guru, whose focus has been on giving information about investing and trading in the stock market to retail investors. Through his social media channel and Karjat Trading Academy, Sathe introduced herself as an expert and connected millions of users to his trading class.
However, recently SEBI has kept him in his eyes, as he has received complaints about some of his programs and classes that they can mislead retail investors in collaboration with operators promoting Penny Stocks. In this regard, the search and seizure campaign lasted for two days on his trading academy near Mumbai exposed the strict monitoring of SEBI on the functioning of Sathe and his academy.
Varshney said that SEBI usually does not comment on personal matters, but this action is part of the comprehensive campaign to strengthen market discipline. He clarified that the purpose of the investigation is not a revenue collection, but to create fear in the wrongdoer and the message is that the regulator is completely attentive.
Strict stand on financial influencers
Speaking on financial influencers, Kamlesh Varshney said that it is necessary to make a difference between real educators and those who mislead investors. According to him, if someone claims guaranteed returns, gives an investment call or uses live market data in the classroom, it is not possible without SEBI registration. However, only those who give information will be encouraged under investor education.
Work on new initiatives
SEBI is working on creating a structure to regulate gray market trades of pre-IPO shares. According to Kamlesh Varshney, this will help in price discovery and tax compliance. He said that discussion on possible changes in the duration of derivative contract will be discussed through advice-psychosis.
Special preparation to stop manipulation
SEBI is developing advanced expertise to analyze complex market manipulation such as gamma trades and high-frequency strategies. PHD scholar is also being appointed for this.
Referring to cases like Jane Street, Varshney said that such investigations are very detail and time taking as the results have to live up to the test of the investigation in the court.