Angel One Settles SEBI Proceedings with ₹4.28 Crore Payment

Leading brokerage firm Angel One has reached a settlement with the Securities and Exchange Board of India (SEBI) regarding regulatory lapses in monitoring its authorised persons (APs). To resolve the adjudication and enquiry proceedings, the company has agreed to pay a settlement amount of ₹4.28 crore.

Lapses in Monitoring Authorised Persons

The SEBI proceedings were initiated following allegations that Angel One failed to adequately supervise the activities of two specific authorised persons, identified as Deepankar Barman and Nadella Srinivas Rao. The regulator had issued show-cause notices in May 2025, alleging that the brokerage did not implement sufficient oversight to identify or act upon violations committed by these intermediaries.

The regulator highlighted several critical gaps in the company's monitoring framework. Specifically, SEBI alleged that Angel One failed to detect unauthorised fund collection activities and did not conduct the necessary due diligence during its internal inspections. Despite observing disproportionate trading patterns by these authorised persons, the brokerage reportedly failed to take appropriate corrective action.

Unauthorised Activities and Compliance Failures

A significant portion of the regulator's concerns centered on the lack of scrutiny regarding social media conduct and portfolio management. SEBI alleged that one of the authorised persons engaged in unauthorised social media activities, which included making promises of assured returns to potential clients and using the Angel One brand name and logo without proper authorization. Furthermore, the individual was accused of conducting unauthorised portfolio management services.

In the case of Nadella Srinivas Rao, the regulatory scrutiny intensified due to large-scale fund collections and disproportionate trading volumes. SEBI flagged technical irregularities, noting instances where orders for multiple different clients were allegedly placed using the same IP and MAC addresses—a major red flag for potential fraudulent activity. Additionally, both APs were found to be trading through other stockbrokers, a violation that Angel One allegedly failed to identify.

Settlement Details and Resolution

進行中の手続きへの対応として、Angel Oneは2025年に和解申請を行いました。このような規制上の解決における標準的な手法に従い、同社は規制当局による具体的な事実認定を認めることも否定することもなく、和解を選択しました。

この和解案は、SEBIの内部委員会、高度諮問委員会（High Powered Advisory Committee）、および常任委員会のパネルによって検討され、その後承認されました。この承認を受け、Angel Oneは2026年5月22日に4.28クロール・ルピーの和解金を送金しました。支払いの完了に伴い、SEBIはSEBI和解手続き規則に基づき、裁定および調査手続きを正式に終結させました。

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