Description
SEBI adjudication order against investment adviser Capital Stroke Investment Services Pvt. Ltd. and its directors for non-compliance with regulations during 2019-2020 inspection period.
Summary
SEBI has issued an adjudication order against Capital Stroke Investment Services Pvt. Ltd. (Registration No. INA000001316) and its directors - Mr. Upendra Singh Rajput, Mr. Prashant Singh Baghel, and Mr. Kamlesh Dhole - following an inspection that revealed non-compliances with SEBI Act, PFUTP Regulations, and Investment Advisers Regulations.
Key Points
- Inspection period covered April 1, 2019 to September 22, 2020
- SEBI conducted inspection between November 3-6, 2020
- Initial interim order issued August 27, 2021, followed by confirmatory order June 8, 2022
- Company required to furnish bank statements, client master, financial statements, and refund information
- Multiple adjudicating officers appointed due to transfers and reallocation
Regulatory Changes
No new regulatory changes introduced - enforcement of existing Investment Advisers Regulations, 2013 and related compliance requirements.
Compliance Requirements
- Investment advisers must maintain proper books of accounts and client records
- Compliance with SEBI Act provisions and Investment Advisers Regulations
- Proper documentation of client agreements and fee structures
- Maintenance of KYC records and pricing information
Important Dates
- Inspection Period: April 1, 2019 to September 22, 2020
- Inspection Conducted: November 3-6, 2020
- Interim Order: August 27, 2021
- Confirmatory Order: June 8, 2022
- Final AO Appointment: April 30, 2025
Impact Assessment
This enforcement action serves as a reminder for investment advisers to maintain strict compliance with regulatory requirements. The order demonstrates SEBI’s continued focus on monitoring and enforcing compliance among registered investment advisers to protect investor interests.
Impact Justification
Regulatory enforcement action against investment adviser for compliance violations