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

Para resolver el asunto sin una batalla legal prolongada, Angel One optó por la vía del acuerdo. La empresa presentó solicitudes de acuerdo en 2025, un procedimiento estándar en el que la entidad paga una multa sin admitir ni negar los hallazgos específicos del regulador.

La propuesta de acuerdo fue revisada por el Comité Interno de SEBI y, posteriormente, recibió la aprobación del Comité Asesor de Alto Nivel y de un panel de Miembros de Tiempo Completo. Tras la aprobación, Angel One remitió el monto del acuerdo de ₹4.28 crore el 22 de mayo de 2026. Una vez completado el pago, SEBI ha dado por concluidos oficialmente los procedimientos de adjudicación e investigación bajo sus Reglamentos de Procedimientos de Acuerdo.

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