The Securities and Exchange Board of India (SEBI) has barred Yash Garg, proprietor of Yash Trading Academy, from accessing the securities market and directed him to refund ₹92.98 lakh collected from investors through unregistered advisory services.
In an order issued on Friday, SEBI said Garg operated multiple Telegram channels under the name Yash Trading Academy (YTA), offering paid trading tips and “account handling” services without obtaining mandatory registration as an investment adviser or portfolio manager.
Unregistered services and profit-sharing model
According to SEBI, Garg provided stock and derivatives trading calls for a fee and also ran profit-sharing arrangements, managing client funds or trading on their behalf in exchange for a share of profits. Such activities fall under regulated investment advisory and portfolio management services.
The regulator noted that Garg admitted during the investigation that he collected fees and commissions and operated these channels without registration.
₹92.98 lakh mobilised from investors
SEBI’s analysis of multiple bank accounts found that Garg collected ₹92.98 lakh between November 2019 and April 2023. The regulator said the amount constituted proceeds of unlawful activity and must be refunded to investors.
As part of its order, SEBI directed Garg to issue public notices within 15 days in national and regional newspapers detailing the refund process and contact information for affected investors. All repayments must be made through traceable banking channels.
False promises and misleading claims
The regulator also found that Garg lured investors with claims of “guaranteed” and “100% returns” and falsely portrayed himself as a SEBI-registered entity. SEBI termed these actions fraudulent and misleading under securities laws. The action follows complaints received from investors.
SEBI’s quasi-judicial authority N Murugan noted in the order that bank records showed multiple credit entries linked to trading tips and profit-sharing arrangements.
No response from accused
Despite a show-cause notice issued in November 2025 and an opportunity for a hearing, Garg neither responded nor appeared before the regulator. SEBI proceeded ex-parte based on available evidence.
Market ban and penalties
SEBI has ordered a full refund within three months and barred Garg from the securities market for two years or until refunds are completed, whichever is later. He has also been prohibited from offering advisory or portfolio services without registration.
Additionally, the regulator imposed a ₹16 lakh penalty, including ₹10 lakh for fraudulent practices and ₹6 lakh for regulatory violations.
Crackdown on unregistered advisers
The action is part of SEBI’s broader push to tighten enforcement against unregistered investment advisers. SEBI Chairman Tuhin Kanta Pandey recently said regulators are closely monitoring digital platforms for misleading financial content, with over 1.3 lakh instances flagged for takedown.
SEBI warned that such unregistered entities pose serious risks to investors and undermine market integrity.
