Angel One Settles SEBI Proceedings with Rs 4.28 Crore Payment

Leading brokerage firm Angel One has resolved its legal friction with the market regulator, SEBI, by paying a settlement amount of ₹4.28 crore. The settlement concludes proceedings initiated over the company's alleged failure to adequately monitor and supervise the activities of its authorised persons (APs).

Lapses in Monitoring Authorised Persons

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 maintain stringent oversight, allowing several violations to go undetected.

The show-cause notices, issued in May 2025, highlighted that the brokerage did not adequately identify or act upon suspicious activities committed by these intermediaries. Key failures included a lack of proper due diligence during inspections and an inability to flag disproportionate trading patterns that should have triggered internal alerts.

Specific Violations and Regulatory Concerns

SEBI’s findings pointed toward several serious operational lapses. In the case of the authorised persons, the regulator alleged that Angel One failed to detect unauthorised fund collection activities. Furthermore, the brokerage was accused of failing to scrutinize unauthorized social media activities, where one AP reportedly promised "assured returns" and engaged in unauthorized portfolio management services while using Angel One’s brand name and logo.

Specific technical and compliance red flags were also raised regarding Nadella Srinivas Rao. SEBI noted large fund collections and disproportionate trading volumes that were not met with necessary inspections. Additionally, the regulator flagged instances where orders for multiple clients were allegedly placed using the same IP and MAC addresses—a significant breach of standard trading protocols. It was also discovered that both APs were trading through other stockbrokers, a fact that Angel One’s monitoring systems failed to identify.

The Settlement Process and Resolution

To resolve the matter without prolonged litigation, Angel One opted for the settlement route. In 2025, the company filed settlement applications without admitting or denying the findings of the regulator.

Nach Beratungen mit dem internen Komitee der SEBI schlug das Unternehmen eine Vergleichsgebühr von 4,28 Crore ₹ vor. Dieser Vorschlag erhielt die erforderlichen Genehmigungen vom High Powered Advisory Committee der SEBI und einem Gremium aus Vollzeitmitgliedern (Whole Time Members). Der Broker überwies den vollständigen Betrag am 22. Mai 2026, was zur offiziellen Beilegung der Adjudikations- und Untersuchungsverfahren gemäß den SEBI Settlement Proceedings Regulations führte.

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