NEW DELHI: Market regulator SEBI said on Wednesday that trading restrictions on Capital Stroke Investment Services and three people would remain in place in a case related to non-compliance by investment advisers. The latest order was issued after assessing whether its instructions issued against these entities in August 2021 should be affirmed, revoked or varied.
“No case is made by the appointees (Capital Stroke and three persons) to revoke or vary the directions contained in the interim order, therefore, I hereby confirm the directions issued against the appointees in the interim order, which will remain in effect until further orders,” said full-time SEBI member Anant Barua in his confirmation order.
In its interim order, SEBI had ordered Capital Stroke and three individuals – Upendra Singh Rajput, Prashant Singh Baghel and Kamlesh Dhole – not to access the securities market and to buy, sell or trade securities or to associate directly with the securities market. or indirectly.
Among other restrictions, they were asked to cease and desist from acting as investment advisers. After carrying out an inspection regarding the affairs of Capital Stroke, in November 2020, Sebi discovered that she had made false and misleading statements in promising guaranteed profits and returns to clients.
Also, he was charging unfair and unreasonable fees to customers.
“The interim order ruled that notices 2, 3 and 4 (Rajput, Baghel and Dhole) are in charge of Capital Stroke’s operations and compliance. I also note that the notices did not dispute this finding of the interim order.,” Barua said.
“Thus, for breaches of the provisions of the Sebi Act 1992, the Sebi Regulations (PFUTP) 2003 and the IA Regulations, by Notice No. 1 (Capital Stroke), I conclude prima facie that Notices No. 2 , 3 and 4 have failed to ensure the maintenance of the appropriate standards of conduct of notice #1, thereby violating the provisions of the … code of conduct as referred to in … the IA rules (counsellor in investment),” Barua added.