On July 24, 2026, SEBI issued an ex parte interim order against Stark Investments and others for conducting unregistered Investment Advisory and Portfolio Management Services (PMS) activities. The regulator acted without prior notice to the entities, a procedural tool used when immediate harm to investors is suspected. SEBI invoked its powers under the SEBI Act, 1992, and relevant regulations to restrain the entities from soliciting clients or collecting funds pending further investigation.

An ex parte interim order is one of SEBI's sharpest regulatory instruments — issued without hearing the opposite party, justified when delay itself causes irreparable harm to investors. In Indian securities law, this power derives from Section 11, 11B, and 11(4) of the SEBI Act, 1992, read with Regulation 11 of the SEBI (Intermediaries) Regulations, 2008. The Stark Investments case fits a recurring pattern SEBI has aggressively pursued: entities operating as Investment Advisers (IAs) or Portfolio Managers without obtaining mandatory SEBI registration, often using social media, messaging apps, or 'tip services' to collect fees from retail investors. Investment Advisers must register under SEBI (Investment Advisers) Regulations, 2013, and Portfolio Managers under SEBI (Portfolio Managers) Regulations, 2020. Operating without registration is not merely a procedural lapse — it bypasses client due diligence, suitability assessments, net worth requirements, and grievance redressal mechanisms that protect retail investors. SEBI's ex parte route ensures the scheme is frozen before funds are siphoned. Post-order, the entities get a show-cause notice and a hearing opportunity, preserving natural justice. This case also signals SEBI's intensifying focus on finfluencers and unregulated advisory platforms that blur the line between education and regulated advice — a priority enforcement area in 2025–26.