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

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 addresses allegations regarding the company's failure to adequately supervise and monitor the activities of two specific authorised persons (APs).

Allegations of Supervisory Failures and Monitoring Lapses

The SEBI proceedings originated from show-cause notices issued in May 2025, centered on the activities of two authorised persons, Deepankar Barman and Nadella Srinivas Rao. The regulator alleged that Angel One failed to implement robust oversight mechanisms to detect and prevent violations committed by these intermediaries.

Specific lapses identified by the regulator included a failure to detect unauthorised fund collection activities and a lack of thorough due diligence during mandatory inspections. Furthermore, SEBI noted that the brokerage did not take appropriate action even when presented with disproportionate trading patterns that should have triggered internal red flags.

Misuse of Brand Identity and Unauthorised Trading Practices

A significant portion of the regulatory concern involved the conduct of the authorised persons on digital platforms. SEBI alleged that Angel One did not sufficiently scrutinise unauthorised social media activities conducted by one of the APs. These activities reportedly included making promises of assured returns to potential clients and engaging in unauthorised portfolio management services.

The regulator also highlighted that the individuals involved were using the Angel One brand name and logo to conduct these activities. In the case of Nadella Srinivas Rao, SEBI flagged serious technical irregularities, noting that orders for multiple different clients were allegedly being placed through the same IP and MAC addresses. Additionally, the brokerage failed to identify that both authorised persons were also trading through other stockbrokers, a direct violation of standard monitoring protocols.

The Settlement Process and Resolution

En respuesta a los procedimientos, Angel One optó por la vía del acuerdo en 2025. Bajo los términos del acuerdo, la empresa presentó solicitudes sin admitir ni negar las conclusiones de los hechos y las consecuencias alegadas por el regulador.

Tras las revisiones del Comité Interno de SEBI, la propuesta fue aprobada por el Comité Asesor de Alto Nivel y un panel de Miembros de Tiempo Completo. Angel One remitió el monto total del acuerdo de ₹4.28 crore el 22 de mayo de 2026. En consecuencia, los procedimientos de adjudicación e investigación han sido oficialmente resueltos bajo las Regulaciones de Procedimientos de Acuerdo de SEBI.

Conclusiones clave