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

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 concludes extensive enquiry proceedings regarding the company's failure to effectively monitor and supervise the activities of its authorised persons (APs).

Lapses in Supervision and Due Diligence

The regulatory action stemmed from SEBI’s investigation into the conduct of two specific authorised persons, Deepankar Barman and Nadella Srinivas Rao. According to the regulator, Angel One failed to implement adequate oversight mechanisms to identify and act upon violations committed by these intermediaries.

SEBI’s findings highlighted several critical operational failures. The brokerage was alleged to have failed in detecting unauthorised fund collection activities and neglected to conduct thorough due diligence during routine inspections. Furthermore, the regulator noted that Angel One did not take timely action despite observing disproportionate trading patterns linked to these authorised persons.

Unauthorised Activities and Brand Misuse

A significant portion of the investigation focused on the unregulated activities conducted via social media. SEBI alleged that Angel One failed to scrutinise the social media presence of one of the APs, who reportedly used the brokerage's brand name and logo to make unauthorised promises of "assured returns." These actions extended into unauthorised portfolio management activities, which bypassed standard regulatory protocols.

The case involving Nadella Srinivas Rao further revealed technical red flags. SEBI pointed out that large-scale fund collections and disproportionate trading occurred without adequate inspection by the brokerage. Additionally, the regulator flagged suspicious technical patterns, where orders for multiple different clients were allegedly placed through the same IP and MAC addresses, suggesting a lack of individual account integrity.

Settlement Without Admission of Guilt

In response to the show-cause notices issued in May 2025, Angel One opted for a settlement route. By filing settlement applications, the brokerage chose to resolve the matter without formally admitting or denying the findings of the regulator.

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

Key Takeaways