Sebi Bars Yash Garg From Securities Market, Orders To Refund Rs. 92.98 Lakh To Investors

The Securities and Exchange Board of India (Sebi) has banned Yash Garg, owner of Yash Trading Academy, from accessing the securities market and ordered him to refund Rs. 92.98 lakh to investors. Garg had collected money from investors through the unregistered investment advisory services.

The order dated March 27 said that Garg operated multiple channels on the social media platform Telegram under the name of Yash Trading Academy (YTA), and offered paid trading tips and “account handling” services to investors. However, Garg or his company had not obtained the necessary registration as an investment adviser or portfolio manager with Sebi.

As per Sebi, Garg provided stock and derivatives trading tips and also ran profit-sharing arrangements, while managing client accounts or trading on behalf of them in return for a share of profits made. Sebi regulations mandate entities to obtain proper registration for such activities under investment advisory and portfolio management services. During Sebi’s investigation, Garg himself had admitted to collecting fees and profit commission via the channels without obtaining the necessary registration.  

Sebi found that between November 2019 and April 2023, Garg had collected Rs. 92.98 lakh from client services, and ordered that the proceeds from illegal activities must be returned to investors. The markets regulator also found that Garg had attracted investors by promising guaranteed and ‘100 per cent’ returns, advertising claims of high profits while falsely portraying himself as a Sebi-registered entity.

Sebi directed Garg to publish a public notice in all editions of two national newspapers, one in English and one in Hindi, along with a widely circulated regional-language newspaper, within 15 days of the order. The notice must mention the refund process and outline details of person(s) to be contacted, including names, addresses and contact information, for investors seeking refunds. Additionally, Sebi said that the repayments must be made only through electronic fund transfers or other traceable banking channels in order to ensure proper audit trails and identification of the beneficiaries.

Sebi has directed that a full refund of investor money should be made within three months. Along with this, Garg has been barred from the securities market for two years or until the refunds are completed, whichever is later. Garg has also been banned from offering advisory and portfolio services without proper registration, with an additional penalty of Rs. 16 lakh. This includes Rs. 10 lakh as fine for fraudulent practices and Rs. 6 lakh for violations of Sebi regulations.