sebi:WTM/AB/WRO/WRO/16948/2022-23

SEBI · SEBI · 2021-08-27 · Ananta Barua, Whole Time Member

Reviewed by Varun Matlani, Advocate — Securities Lawyer practicing in SAT and SEBI

Facts / Headnote

Directions in the ex-parte ad interim order dated August 27, 2021 confirmed and to remain in force till further orders.

Provisions invoked

Regulations relied on

Parties

Holding

SEBI confirmed the directions issued in the ex-parte ad interim order dated August 27, 2021 against Capital Stroke Investment Services Pvt. Ltd. and its directors, finding that Noticee no. 1 made false and misleading representations promising assured profits and charged unfair and unreasonable fees, and that Noticees 2-4 failed to ensure proper conduct.

Full text

Confirmatory Order in the matter of Capital Stroke Investment Services Pvt. Ltd. Page 1 of 15 WTM/AB/WRO/WRO/16948/2022-23

Confirmatory Order in the matter of Capital Stroke Investment Services Pvt. Ltd. Page 2 of 15 Guidelines framed thereunder. After conclusion of inspection, SEBI found Noticee no. 1 to 4, to have prima facie violated the provisions of Regulation 15(1) of IA Regulations, and Clauses 1 and 2 of Code of Conduct for Investment Advisers as specified in Third Schedule readwith Regulation 15(9) of IA Regulations, and Regulations 3 (a), (b), (c) & (d), 4(1), 4(2)(k) and 4(2)(s) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”) read with Section 12A(a), (b) and (c) of SEBI Act, 1992. Additionally, Noticee no. 2 to 4 were also prima facie found to have violated Clause 9 of the Code of Conduct as mentioned in Schedule III read with Regulation 15(9) of IA Regulations. In view of the aforesaid prima facie violations by the Noticees, SEBI passed an ex-parte ad interim order dated August 27, 2021 (hereinafter referred to as “the Interim Order”), against the Noticees and the following directions were issued:

Confirmatory Order in the matter of Capital Stroke Investment Services Pvt. Ltd. Page 3 of 15 the Noticees. The Interim Order inter alia alleges following main violations by the Noticee no. 1:

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