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Dancing Finfluencer's ₹600 Cr Scam Unveiled!
14 Dec
Summary
- Finfluencer Avadhut Sathe amassed over ₹601 crore from 337,000 individuals.
- Regulator found 65% of participants in a mentorship course lost money.
- Jane Street barred for alleged manipulation, asked to disgorge ₹4,844 crore.
India's financial markets are witnessing increased scrutiny as regulators target unregistered finfluencers and sophisticated trading firms. Avadhut Sathe, a popular 'dancing finfluencer,' faces allegations of collecting ₹601.37 crore from over 337,000 individuals through unregistered advisory services disguised as educational courses. An interim order revealed that a majority of participants in his expensive mentorship program suffered substantial financial losses.
In parallel, the Securities and Exchange Board of India (Sebi) took action against global high-frequency trading firm Jane Street. The firm was barred from Indian markets and ordered to disgorge ₹4,844 crore for alleged manipulation of benchmark indices. This move highlights the risks faced by retail investors against advanced algorithmic trading strategies.
These actions come amid a sobering year for many Indian investors, with a study indicating 91% of derivatives traders losing money. The market is shifting focus from frenzy to fundamentals, emphasizing valuation discipline and diversification as crucial strategies for wealth creation in the evolving financial landscape.
