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

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 company's oversight of two authorised persons (APs) and their subsequent violations.

Regulatory Lapses in Supervising Authorised Persons

The SEBI proceedings stemmed from alleged failures by Angel One to adequately monitor and supervise the activities of two specific authorised persons, Deepankar Barman and Nadella Srinivas Rao. The regulator had issued show-cause notices in May 2025, alleging that the brokerage failed to identify and act upon several violations committed by these intermediaries.

The investigation highlighted significant gaps in Angel One's internal controls. According to SEBI, the firm failed to detect unauthorised fund collection activities and did not conduct sufficient due diligence during its inspections. Furthermore, the brokerage was flagged for failing to intervene despite observing disproportionate trading patterns that should have triggered regulatory scrutiny.

Social Media Misconduct and Trading Irregularities

A critical component of the SEBI investigation involved the conduct of the authorised persons on digital platforms. One of the APs was found to have engaged in unauthorised social media activities, which included making illegal promises of "assured returns" to potential clients. This individual also allegedly engaged in unauthorised portfolio management activities while improperly using the Angel One brand name and logo to gain credibility.

In the specific case of Nadella Srinivas Rao, SEBI pointed toward severe operational irregularities. The regulator noted that Angel One failed to conduct necessary inspections despite massive fund collections and highly disproportionate trading volumes. Technical red flags were also raised when orders for multiple different clients were allegedly placed using the same IP and MAC addresses, suggesting a centralized and potentially unauthorised execution process.

Settlement Without Admission or Denial

हा विषय सोडवण्यासाठी, Angel One ने २०२५ मध्ये तडजोड अर्ज दाखल केले. हे लक्षात घेणे महत्त्वाचे आहे की, कंपनीने नियामकाच्या निष्कर्षांचे समर्थन किंवा खंडन न करता हा मार्ग निवडला. SEBI च्या अंतर्गत समितीसोबतच्या चर्चेनंतर, कंपनी ₹४.२८ कोटींच्या तडजोड रकमेवर सहमत झाली.

तडजोडीच्या प्रस्तावाला SEBI च्या उच्चाधिकार सल्लागार समितीकडून आणि पूर्णवेळ सदस्यांच्या पॅनेलकडून औपचारिक मंजुरी मिळाली. २२ मे, २०२६ रोजी तडजोड रक्कम जमा केल्यानंतर, नियामकाने SEBI तडजोड कार्यवाही नियमांतर्गत (SEBI Settlement Proceedings Regulations) न्यायनिवाडा आणि चौकशी कार्यवाही अधिकृतपणे निकाली काढली आहे.

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