SEBI ex parte interim order against Stark Investments for unregistered IA/PMS
SEBI passed an ex parte interim order against Stark Investments and others for unregistered investment advisory and portfolio management services.
SEBI acted against Stark Investments for conducting investment advisory and PMS activities without registration. The interim order reflects continued crackdown on unregistered financial services and finfluencer-adjacent activity in India.
Reinforces perimeter enforcement on unregistered advisory activity, increasing due-diligence expectations on distribution channels.
Action Required
Verify registration status of counterparties and third-party advisors; strengthen onboarding due diligence on IA/PMS providers.
Signals SEBI's expanding enforcement against unregistered advisory and PMS activity affecting retail investors.
Review controls over referral partners, advisors, and PMS providers to confirm SEBI registration; enhance monitoring of unregistered advisory risks in distribution.
“SEBI Ex Parte Interim Order in the matter of Unregistered Investment Advisory and Unregistered Portfolio Management Services activities by Stark Investments and Ors.”