Angel One Settles SEBI Proceedings by Paying ₹4.28 Crore Fine

Major brokerage firm Angel One has reached a settlement with the Securities and Exchange Board of India (SEBI) regarding lapses in its supervision of authorised persons. The company has agreed to pay a settlement amount of ₹4.28 crore to resolve adjudication and enquiry proceedings initiated by the market regulator.

Lapses in Monitoring Authorised Persons

The regulatory action stemmed from SEBI's investigation into Angel One's failure to adequately monitor and supervise two specific authorised persons (APs): Deepankar Barman and Nadella Srinivas Rao. SEBI had issued show-cause notices in May 2025, alleging that the brokerage firm failed to identify and act on several regulatory violations committed by these individuals.

The regulator's findings highlighted significant gaps in the company's oversight mechanisms. Specifically, SEBI alleged that Angel One failed to detect unauthorised fund collection activities and did not conduct sufficient due diligence during its periodic inspections. Furthermore, the brokerage was flagged for failing to take appropriate action even when faced with disproportionate trading patterns linked to these authorised persons.

Social Media Violations and Unauthorised Activities

One of the more serious allegations involved the misuse of the brand's reputation and improper client engagement. SEBI alleged that Angel One did not adequately scrutinize the social media activities of one of the authorised persons. These activities reportedly included making unauthorized promises of "assured returns" and engaging in unauthorised portfolio management services.

Crucially, the individual in question was allegedly using the Angel One brand name and logo to lend credibility to these unauthorised activities. This lack of digital and operational oversight highlighted a vulnerability in how brokerage firms manage the online presence and professional conduct of their sub-brokers and representatives.

Technical Red Flags and Multiple Brokerage Use

The investigation also uncovered technical irregularities and compliance failures regarding client activity. In the case of Nadella Srinivas Rao, SEBI pointed out that the brokerage failed to conduct inspections despite large-scale fund collections and highly disproportionate trading volumes.

The regulator also flagged technical red flags where orders for multiple different clients were allegedly placed through the same IP and MAC addresses, suggesting a lack of individual client distinction. Additionally, SEBI noted that both authorised persons were trading through other stockbrokers—a fact that Angel One failed to identify through its internal monitoring systems.

The Settlement Process

To resolve these issues without a prolonged legal battle, Angel One filed settlement applications in 2025. In accordance with standard regulatory practice, the company opted to settle "without admitting or denying" the findings of the regulator.

Following deliberations with SEBI's Internal Committee, the company's proposal was approved by the High Powered Advisory Committee and a panel of Whole Time Members. Angel One remitted the settlement sum of ₹4.28 crore on May 22, 2026, leading to the formal disposal of the proceedings under the SEBI Settlement Proceedings Regulations.

Key Takeaways