SEBI finds Capital Stroke promised assured returns, submitted forged documents

This is a final order by SEBI regarding Capital Stroke Investment Services Pvt. Ltd., an investment adviser, concerning alleged violations of regulations including promising assured returns, charging unfair fees, and submitting forged documents.

Who it concerns: Capital Stroke Investment Services Pvt. Ltd. (SEBI Registration No. INA000001316)

What SEBI found or ordered

• SEBI found that the Noticee promised assured returns and failed to act in a fiduciary capacity.
• SEBI found that the Noticee submitted forged documents during the inspection.
• SEBI found that the Noticee charged advisory fees multiple times before the previous service tenure completed and charged fees higher than specified on its website.
• SEBI found that the Noticee was involved in the unregistered advisory activity of Green Wealth.
• The Designated Authority recommended the cancellation of the Noticee's certificate of registration.
• The order is issued under Section 12(3) of the SEBI Act, 1992, read with Regulations 27 and 35 of the SEBI (Intermediaries) Regulations, 2008.

Also in the document

• The order is a Final Order, following an interim order dated August 27, 2021, and a confirmatory order dated June 08, 2022.
• The inspection covered the period from April 01, 2019, to September 22, 2020.
• The Noticee argued that the evidence (screenshots, emails, call recordings) was forged and lacked authentication, but SEBI proceeded with the findings.