The first line of this verse is composed of three parts. In all of them, the subject is omitted, because the verb form indicates the third person singular personal pronoun. 1) ovadeyya (he should admonish, 3rd person, singular, active, optative). 2) anusāseyya (he should give advice, 3rd person, singular, active, optative). 3) asabbhā ca nivāraye (and he should restrain one from evil). Here the noun asabbhā (from evil, ablative singular) is the object and the conjunction ca (and) connects this sentence to the previous two. In the second line there are two sentences. 1) sataṃ hi so piyo hoti (he is indeed dear to the good ones). The subject is the pronoun so (he, nominative singular). The verb is hoti (is, 3rd person, singular, active, indicative, present tense). The object is the adjective piyo (dear, nominative singular) with its attribute, the active present participle sataṃ (for the good ones, genitive plural). This word is stressed by the particle hi (indeed). The second sentence is asataṃ hoti appiyo ([he] is not agreeable to the bad ones). The subject is omitted; the pronoun so from the previous sentence is implied. The verb is again hoti (as above). The object is the adjective appiyo (not agreeable, nominative singular) with its attribute, the active present participle asataṃ (for the bad ones, genitive plural).
There were two monks, Assaji and Punabhasuka, staying in the village of Kitāgiri together with their disciples. They planted trees for personal gain and violated some other minor monks' precepts. Thus, the monastery became noisy and not suitable for spiritual development. When the Buddha heard about it, he sent Sāriputta and Moggallāna to advise these monks. After the admonition from the two Buddha's chief disciples, most of the monks changed their way of life. But some of them were not happy and returned to the household life. The Buddha reacted with this verse, saying that admonishing and instructing is always fine with the good ones, whereas the bad ones never agree to being advised.