Order Against Mr. Yash Garg, Proprietor of Yash Trading Academy for Unregistered Investment Advisory Services

Description

SEBI issues order against Mr. Yash Garg of Yash Trading Academy for operating unregistered investment advisory and portfolio management services, making false claims of SEBI registration, and guaranteeing returns to investors.

Summary

SEBI issued an enforcement order (Ref: QJA/MN/NRO/NRO-DIV-I/32304/2025-26) against Mr. Yash Garg, proprietor of Yash Trading Academy (YTA), for offering unregistered investment advisory and portfolio management services through multiple Telegram channels and a website (www.yashtradingacademy.com). The Noticee falsely claimed to be a SEBI-registered entity and offered guaranteed returns to clients, in violation of SEBI Act and related regulations.

Key Points

• Mr. Yash Garg operated ‘Yash Trading Academy’ (YTA) via Telegram channels and a website, offering investment calls and demat account handling services for consideration.
• Bank account examination revealed credit entries related to trading tips and profit sharing, confirming unregistered investment advisory and portfolio management activity.
• The Noticee was not registered with SEBI as an Investment Adviser or Portfolio Manager.
• YTA falsely claimed to be a SEBI-registered intermediary and offered guaranteed returns, constituting fraudulent and unfair trade practices.
• A Show Cause Notice (SCN) was issued on November 14, 2025 alleging violations of SEBI Act and multiple regulations.

Regulatory Changes

No new regulatory changes introduced. This order applies and enforces existing regulations:

• Section 12(1) of the SEBI Act
• Regulation 3(1) of SEBI (Investment Advisers) Regulations, 2013
• Regulation 3 read with 2(1)(o) of SEBI (Portfolio Managers) Regulations, 2020
• Section 12A(a), (b), (c) of the SEBI Act
• Regulations 3(a), (b), (c), (d) and 4(2)(k) and (s) of SEBI (PFUTP) Regulations, 2003

Compliance Requirements

• Any entity offering investment advisory services must be registered with SEBI under the IA Regulations before soliciting clients or accepting fees.
• Portfolio management services require SEBI registration under the PMS Regulations.
• Entities must not make false claims of SEBI registration or promise guaranteed returns.
• Penalties applicable under Sections 15EB and 15HB read with Sections 11(4A) and 11B(2) of the SEBI Act for violations.

Important Dates

• November 14, 2025: Show Cause Notice issued to Mr. Yash Garg.
• March 27, 2026: Final order issued by SEBI.

Impact Assessment

This order primarily impacts retail investors who may have subscribed to YTA’s services through Telegram, potentially suffering financial losses from unregistered advice and fee collection. The action reinforces SEBI’s ongoing crackdown on unregistered finfluencers and fake investment advisors operating on social media platforms. There is no direct impact on listed stocks or broader market operations. The order serves as a deterrent to other unregistered entities offering similar services online.

Impact Justification

Enforcement action against an individual unregistered intermediary operating via Telegram; significant for retail investor protection but limited direct market impact.