Angel One Settles SEBI Probe Over Monitoring Lapses; Pays ₹4.28 Crore

Leading brokerage firm Angel One has resolved adjudication and enquiry proceedings initiated by the Securities and Exchange Board of India (SEBI) by paying a settlement fee of ₹4.28 crore. The regulatory action stemmed from alleged deficiencies in the firm's supervision and monitoring of its authorised persons (APs).

Lapses in Supervising Authorised Persons

The SEBI proceedings were centered on the company's failure to adequately monitor the activities of two specific authorised persons, identified as Deepankar Barman and Nadella Srinivas Rao. According to the regulator, Angel One failed to maintain the necessary oversight required to identify and act upon various violations committed by these intermediaries.

The regulator's investigation highlighted several critical areas of negligence. Specifically, it was alleged that Angel One failed to detect unauthorised fund collection activities and did not conduct sufficient due diligence during routine inspections. Furthermore, the brokerage allegedly overlooked disproportionate trading patterns exhibited by these authorised persons, which should have served as red flags for regulatory scrutiny.

Unauthorised Activities and Brand Misuse

A significant portion of the SEBI probe focused on the lack of scrutiny regarding social media conduct and portfolio management. One of the authorised persons was allegedly involved in making improper promises of "assured returns" to clients through social media platforms.

The regulator noted that these activities included unauthorised portfolio management services and the misuse of Angel One’s official brand name and logo to lend credibility to these illicit practices. Additionally, in the case of Nadella Srinivas Rao, SEBI flagged instances where orders for multiple different clients were being placed through the same IP and MAC addresses—a serious breach of standard operating procedures in digital trading.

Settlement Without Admission of Guilt

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

Following a review by SEBI's Internal Committee, the settlement proposal was approved by the High Powered Advisory Committee and a panel of Whole Time Members. Angel One subsequently remitted the settlement amount 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