Options for Everyone

2026-07-10 · Source: Net Interest · Field: Finance & Economics — Capital Markets & Investment Management, Economic Analysis & Policy, FinTech & Digital Financial Services · Depth: Intermediate, short

Summary

Avadhut Sathe's Training Academy, launched in 2008, recruited over 400,000 investors by October 2025, collecting \$63 million in fees from courses like the 72,000-rupee (\$750) GEO program. However, an Indian regulator SEBI analysis found two-thirds of participants lost money post-course, with advertised successes like Lakshmi's "1 crore milestone" being only 4% accurate. Sathe himself lost \$450,000 in personal trading. This mirrors a broader trend where 91% of Indian equity derivatives participants lose money, totaling \$11 billion in FY ending March 2025. In response, SEBI banned Sathe for unregistered advice, ordered disgorgement of fees, and deployed an AI tool, Sudarshan, to police social media. Other regulatory actions include increased minimum contract sizes and higher transaction taxes. These measures pose a challenge for the National Stock Exchange, which earns 60% of its operating revenue from options trading and holds a 51% global market share in equity derivatives, as it prepares for a \$3 billion IPO.

Key takeaway

For investors considering retail trading courses or engaging in derivatives, recognize that advertised success stories are often misleading, and the probability of significant losses is extremely high. Indian regulators found 91% of derivatives traders lose money, and even "successful" academy founders incur substantial personal losses. You should critically evaluate claims, understand the increasing regulatory crackdown on unregistered advice, and prioritize risk management over promises of quick profits.

Key insights

Retail trading academies often profit from fees while students incur substantial losses, prompting regulatory intervention.

Principles

• Trading education fees do not correlate with student success.
• Public testimonials can significantly misrepresent actual returns.
• The vast majority of retail derivatives traders experience losses.

Method

SEBI employs an AI tool, Sudarshan, to identify and remove problematic investment advice posts and accounts on social media platforms.

In practice

• Regulators are deploying AI for social media surveillance.
• Increased minimum contract sizes restrict retail investor access.
• Upfront option premiums mitigate excessive leverage risks.

Topics

• Retail Trading
• Equity Derivatives
• SEBI Regulation
• Investment Scams
• AI Regulatory Tools
• National Stock Exchange IPO

Best for: CTO, Executive, Entrepreneur, Investor, Legal Professional, Policy Maker

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Editorial summary, takeaway, and curation by AIssential. Original article published by Net Interest.