Angel One Settles SEBI Proceedings by Paying ₹4.28 Crore Penalty

Leading brokerage firm Angel One has resolved its legal standoff with the market regulator, SEBI, by paying a settlement amount of ₹4.28 crore. The settlement concludes proceedings regarding significant lapses in the supervision and monitoring of two of its authorised persons (APs).

Lapses in Monitoring Authorised Persons

The regulatory action stemmed from SEBI's investigation into the activities of two authorised persons, identified as Deepankar Barman and Nadella Srinivas Rao. SEBI had issued show-cause notices in May 2025, alleging that Angel One failed to uphold its intermediary obligations by neglecting to adequately identify and act upon violations committed by these individuals.

The regulator highlighted several critical oversight failures. Specifically, SEBI alleged that the brokerage failed to detect unauthorized fund collection activities and did not perform the necessary due diligence during required inspections. Furthermore, the company was flagged for failing to react to disproportionate trading patterns exhibited by these authorised persons, which should have triggered internal scrutiny.

Unauthorised Activities and Social Media Misconduct

A significant portion of the investigation focused on the lack of scrutiny regarding social media conduct and unauthorized services. SEBI alleged that one of the authorised persons engaged in unauthorized social media activities, which included making promises of assured returns to potential clients. This individual also allegedly engaged in unauthorized portfolio management activities while misusing the Angel One brand name and logo to gain credibility.

In the specific case of Nadella Srinivas Rao, the regulator pointed to large-scale fund collections and disproportionate trading activity that went uninspected by the brokerage. SEBI also flagged technical red flags, noting instances where orders for multiple different clients were allegedly placed through the same IP and MAC addresses, suggesting a lack of client segregation and oversight.

Settlement Terms and Regulatory Resolution

Para resolver el asunto sin un litigio prolongado, Angel One presentó solicitudes de acuerdo en 2025. Cabe destacar que la empresa optó por un acuerdo "sin admitir ni negar" las conclusiones del regulador. Esta es una vía legal común en los procedimientos regulatorios que permite a las empresas cerrar capítulos sin una admisión formal de culpabilidad.

Tras las deliberaciones con el 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 del acuerdo de ₹4.28 crore el 22 de mayo de 2026. Con este pago, los procedimientos de adjudicación e investigación han sido oficialmente resueltos bajo las Regulaciones de Procedimientos de Acuerdo de SEBI.

Conclusiones clave