Adjudication order in the matter of Capital Vraddhi Financial Services. Proprietor Raju Jhariya

The Securities and Exchange Board of India has imposed a penalty of ₹40,00,000 on Capital Vraddhi Financial Services for violating various regulations. The notice was issued after an inspection found that the company had engaged in unfair trade practices, including promising guaranteed returns, advising clients to trade without stop loss, and misrepresenting client risk profiles.

The penalty is comprised of ₹20,00,000 under Section 15EB, ₹15,00,000 under Section 15HA, ₹3,00,000 under Section 15B, and ₹2,00,000 under Section 15A(c) of the SEBI Act. The adjudicating officer has taken into account factors such as the amount of disproportionate gain or unfair advantage made by the company, the loss caused to investors, and the repetitive nature of the default.

The penalty is commensurate with the lapse/omission on the part of Capital Vraddhi Financial Services. The noticee is required to remit/pay the said amount of penalty within 45 days through online payment facility available on the SEBI website.