Sebi has cancelled the registration of Capital Stroke Investment Services and barred it from the securities market for five years over multiple violations, including promising assured returns to clients.
In a final order passed on October 15, Sebi found that the investment adviser had made misleading representations to attract clients, including promises of specific profits through calls and false client testimonials on its website.
The regulator also found that only seven of the entity's 314 employees held NISM certification, despite around 35 employees providing investment advisory-related services.
Other violations included submission of forged documents during inspection, charging arbitrary fees, and repeatedly charging clients for the same advisory service before the previous tenure ended.
Sebi also flagged failures to communicate advisory details and disclose clients' risk profiles, as well as involvement in Green Wealth's unregistered advisory activity.