Market regulator Securities and Exchange Board of India (SEBI) has barred Yash Garg, proprietor of Yash Trading Academy, from the securities market for two years, imposed a penalty of ₹13 lakh and directed him to refund ₹92.98 lakh collected from investors through unregistered investment advisory and portfolio management activities.
In a detailed 32-page order, SEBI found that Mr Garg lured investors with claims of '100% guaranteed profit' while falsely projecting himself as a SEBI-registered entity. The regulator noted that he operated multiple Telegram channels under the banner of 'Yash Trading Academy' (YTA), offering paid trading tips, portfolio management services and even direct 'account handling' in clients’ demat accounts without obtaining the mandatory registration.
The investigation, initiated following a complaint, revealed that Mr Garg ran a network of Telegram channels such as 'YTA Premium', 'Yash Trading Academy' and 'Intraday Blaster', attracting thousands of subscribers. Through these channels, he provided trading calls across equity and derivatives segments, charged subscription fees for premium advisory services and offered “account handling” services where clients either transferred funds or granted access to their trading accounts. In several cases, he operated profit-sharing arrangements, retaining up to 50% of the gains.
SEBI observed that such 'account handling' clearly falls within the ambit of portfolio management services, as it involves managing or administering client funds and securities. Simultaneously, the paid trading calls and recommendations constituted investment advisory services. Despite carrying out both activities, Mr Garg had not obtained registration from SEBI in either capacity, thereby violating regulatory provisions.
The regulator also found that Mr Garg misled investors by claiming that his operations were backed by a 'SEBI-registered' or 'National Institute of Securities Markets (NISM)-certified” team. These claims were found to be false. SEBI further pointed out that the existence of a similarly named legitimate entity increased the risk of investor confusion.
More concerning were the repeated assurances of 'guaranteed profits', '100% return' and 'zero risk' trading. SEBI emphasised that such claims are inherently misleading, as returns in the securities market are subject to market risks and cannot be assured. It concluded that these representations were fraudulent and intended to induce investors to part with their money.
An analysis of Mr Garg bank accounts across multiple banks, including Axis Bank, IDFC Bank, Yes Bank and AU Small Finance Bank, revealed a steady flow of funds linked to these activities. After excluding unrelated transactions, SEBI determined that ₹92.98 lakh had been collected between November 2019 and April 2023 as fees, commissions and profit-sharing income. Transaction descriptions referencing 'account handling', 'premium calls' and 'monthly charges' further corroborated the nature of the services.
Despite repeated attempts by SEBI to seek his response through emails, postal notices and public notices, Mr Garg neither replied to the show-cause notice (SCN) nor appeared for a personal hearing. The regulator, therefore, proceeded ex parte based on the material available on record.
SEBI concluded that Mr Garg had violated provisions governing investment advisers and portfolio managers, as well as rules prohibiting fraudulent and unfair trade practices. It directed him to cease and desist from such activities, refund all monies collected from investors within three months and barred him from accessing the securities market for two years.
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