New Delhi, Dec. 19 -- Nearly 60% of the monthly expenses of finfluencer Avadhut Sathe's trading academy, currently under regulatory scrutiny, go towards advertising and seminars, according to a submission made by the academy to the Securities Appellate Tribunal (SAT).

During a hearing on December 19, SAT was considering an appeal by Avadhut Sathe Trading Academy and others seeking a stay on certain directions issued by the Securities and Exchange Board of India (SEBI) in its interim order dated December 4.

The academy told the tribunal that it is unable to meet its monthly expenses of Rs 5.25 crore ($0.5 million) following the freezing of its bank accounts.

Among the listed expenses, the highest was Rs 2 crore a month on advertising and Rs 1 crore on holding seminars. Together, these account for around 57% of its total monthly expenditure.

The academy sought a stay on three SEBI directions, including the freezing of bank and demat accounts held by the academy and by Avadhut Dinkar Sathe, arguing that access to funds was necessary to meet ongoing expenses.

SEBI objected particularly to the advertising and seminar costs, arguing before the tribunal that these expenses are not "imminent".

After considering both sides, the tribunal allowed debit from the bank account up to Rs 2.25 crore, excluding advertising and seminar expenses.

"Since, SEBI had passed an ex-parte interim order with direction like debarment, freeze of bank accounts, etc. the academy and other Noticees [to whom Sebi had served the order] had approached the tribunal seeking relief by way of stay on the regulator's directions," said Anand Kankani, practising company secretary, who advises market-regulated entities on securities law and represents clients before SAT. "In today's hearing, SAT did not make any final ruling on that but instead granted temporary relief to the Academy, enabling them to cover their administrative expenses like salaries etc."

Other expenses

As per the submission to SAT, employee salaries amount to Rs 10 lakh a month, while "professional fees" stand at Rs 90 lakh. Staff insurance costs Rs 50,000 monthly, and canteen expenses are listed at Rs 60 lakh.

Electricity and website hosting also feature as significant costs, at Rs 22 lakh and Rs 19 lakh per month, respectively.

The academy also sought a stay on two other SEBI directions, the impounding of Rs 546 crore allegedly earned through unregistered investment advisory and research analyst activities, and opening a lien-marked account in SEBI's favour to hold the alleged unlawful gains.

On these two issues, the tribunal has maintained the status quo following SEBI's interim order.

The next hearing on this matter will be held on January 9, 2026.

Published by HT Digital Content Services with permission from VC Circle.