Angel One Settles SEBI Probe Over AP Monitoring Lapses with ₹4.28 Crore Payment

Leading brokerage firm Angel One has resolved its regulatory disputes with the Securities and Exchange Board of India (SEBI) by paying a settlement fee of ₹4.28 crore. The settlement addresses allegations regarding the company's failure to adequately supervise and monitor the activities of two specific authorised persons (APs).

Allegations of Supervisory Failures and Monitoring Lapses

The SEBI proceedings originated from show-cause notices issued in May 2025, centered on the activities of two authorised persons, Deepankar Barman and Nadella Srinivas Rao. The regulator alleged that Angel One failed to implement robust oversight mechanisms to detect and prevent violations committed by these intermediaries.

Specific lapses identified by the regulator included a failure to detect unauthorised fund collection activities and a lack of thorough due diligence during mandatory inspections. Furthermore, SEBI noted that the brokerage did not take appropriate action even when presented with disproportionate trading patterns that should have triggered internal red flags.

Misuse of Brand Identity and Unauthorised Trading Practices

A significant portion of the regulatory concern involved the conduct of the authorised persons on digital platforms. SEBI alleged that Angel One did not sufficiently scrutinise unauthorised social media activities conducted by one of the APs. These activities reportedly included making promises of assured returns to potential clients and engaging in unauthorised portfolio management services.

The regulator also highlighted that the individuals involved were using the Angel One brand name and logo to conduct these activities. In the case of Nadella Srinivas Rao, SEBI flagged serious technical irregularities, noting that orders for multiple different clients were allegedly being placed through the same IP and MAC addresses. Additionally, the brokerage failed to identify that both authorised persons were also trading through other stockbrokers, a direct violation of standard monitoring protocols.

The Settlement Process and Resolution

In response to the proceedings, Angel One opted for the settlement route in 2025. Under the terms of the settlement, the company filed applications without admitting or denying the findings of fact and consequences alleged by the regulator.

Following reviews by SEBI's Internal Committee, the proposal was approved by the High Powered Advisory Committee and a panel of Whole Time Members. Angel One remitted the total settlement amount of ₹4.28 crore on May 22, 2026. Consequently, the adjudication and enquiry proceedings have been officially disposed of under the SEBI Settlement Proceedings Regulations.

Key Takeaways