Angel One Settles SEBI Proceedings with ₹4.28 Crore Payment

Leading brokerage firm Angel One has resolved its legal standoff with the capital markets regulator, SEBI, by paying a settlement amount of ₹4.28 crore. The settlement brings an end to adjudication and enquiry proceedings concerning systemic lapses in the supervision of its authorised persons (APs).

Lapses in Monitoring Authorised Persons

The SEBI proceedings were initiated following allegations of inadequate monitoring and supervision of two specific authorised persons, Deepankar Barman and Nadella Srinivas Rao. The regulator had issued show-cause notices in May 2025, alleging that Angel One failed to identify and act upon various violations committed by these intermediaries.

The core of the regulator's concern was the brokerage's inability to detect unauthorized fund collection activities. SEBI noted that the firm did not conduct proper due diligence during inspections and failed to respond to disproportionate trading patterns exhibited by these APs. Furthermore, the firm was unable to identify that these authorised persons were also trading through other stockbrokers, a significant breach of standard monitoring protocols.

Social Media Misconduct and Technical Red Flags

A significant portion of the investigation focused on the unauthorized use of the Angel One brand. SEBI alleged that the brokerage failed to scrutinize social media activities where an authorised person allegedly used the company’s name and logo to make unlawful promises of assured returns. This also extended to unauthorized portfolio management activities, which bypasses strict regulatory frameworks.

In the specific case of Nadella Srinivas Rao, the regulator highlighted more technical and operational red flags. Despite large-scale fund collections and irregular trading volumes, Angel One reportedly failed to conduct necessary inspections. Crucially, SEBI flagged instances where multiple client orders were being placed through the same IP and MAC addresses, indicating a lack of oversight regarding how trades were being executed on behalf of clients.

Settlement Without Admission of Guilt

To resolve the matter, Angel One filed settlement applications in 2025. In accordance with standard regulatory procedures, the company opted to settle the proceedings without admitting or denying the findings of fact and circumstances alleged by SEBI.

Following reviews by SEBI's Internal Committee, the proposal was cleared by the High Powered Advisory Committee and a panel of Whole Time Members. The brokerage remitted the total settlement charge of ₹4.28 crore on May 22, 2026. With this payment, the adjudication and enquiry proceedings have been officially disposed of under the SEBI Settlement Proceedings Regulations.

Key Takeaways