Angel One Settles SEBI Proceedings with ₹4.28 Crore Payment

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 settlement addresses regulatory concerns regarding the firm's oversight and supervision of its authorised persons (APs).

Lapses in Monitoring Authorised Persons

The regulatory action stemmed from alleged failures by Angel One in monitoring the activities of two specific authorised persons: Deepankar Barman and Nadella Srinivas Rao. SEBI had issued show-cause notices in May 2025, alleging that the brokerage failed to identify and take timely action against several violations committed by these intermediaries.

The regulator’s investigation highlighted significant gaps in the company's due diligence processes. Specifically, SEBI alleged that Angel One failed to detect unauthorized fund collection activities and did not conduct adequate inspections to identify disproportionate trading patterns. Furthermore, the firm failed to notice that both authorised persons were actively trading through other stock brokers, a direct violation of standard monitoring protocols.

Unauthorised Activities and Social Media Misuse

A critical component of the SEBI proceedings involved the lack of scrutiny over the digital and professional conduct of the APs. The regulator flagged instances where one of the authorised persons engaged in unauthorized social media activities, which included making promises of "assured returns" to potential clients.

The investigation revealed that these individuals were also involved in unauthorized portfolio management activities. Crucially, they were allegedly using the Angel One brand name and logo to lend credibility to these unregulated services. In the specific case of Nadella Srinivas Rao, SEBI pointed out that despite large-scale fund collections and disproportionate trading volumes, Angel One failed to conduct the necessary inspections. The regulator also noted suspicious technical patterns, such as orders being placed for multiple different clients using the same IP and MAC addresses.

Settlement Terms and Resolution

To resolve the matter without a prolonged legal battle, Angel One opted for the settlement route. The company filed settlement applications in 2025, a standard procedure where the entity pays a fine without admitting or denying the specific findings of the regulator.

The settlement proposal was reviewed by SEBI's Internal Committee and subsequently received approval from the High Powered Advisory Committee and a panel of Whole Time Members. Following the approval, Angel One remitted the ₹4.28 crore settlement amount on May 22, 2026. With the payment completed, SEBI has officially disposed of the adjudication and enquiry proceedings under its Settlement Proceedings Regulations.

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