Angel One Settles SEBI Probe Over Monitoring Lapses; Pays ₹4.28 Crore

Leading brokerage firm Angel One has resolved its legal dispute with the Securities and Exchange Board of India (SEBI) by paying a settlement amount of ₹4.28 crore. The settlement brings an end to adjudication and enquiry proceedings regarding the firm's alleged failure to supervise its authorised persons (APs).

Details of the SEBI Allegations

The regulatory proceedings were initiated following allegations that Angel One failed to adequately monitor and supervise the activities of two specific authorised persons, Deepankar Barman and Nadella Srinivas Rao. SEBI had issued show-cause notices in May 2025, highlighting significant gaps in the brokerage's oversight mechanisms.

The regulator alleged that Angel One did not detect unauthorised fund collection activities and failed to conduct necessary due diligence during inspections. Furthermore, the brokerage was flagged for failing to act upon disproportionate trading patterns exhibited by these authorised persons, which should have triggered internal red flags.

Failures in Social Media and Digital Scrutiny

A critical aspect of the SEBI investigation involved the digital conduct of the authorised persons. The regulator alleged that Angel One did not sufficiently scrutinise unauthorised social media activities, particularly regarding one of the individuals.

These activities reportedly included making promises of "assured returns" to potential investors and engaging in unauthorised portfolio management services. Most concerningly, the individuals were allegedly using the Angel One brand name and logo to lend credibility to these unauthorized practices.

Technical and Compliance Lapses

The investigation into Nadella Srinivas Rao revealed specific technical irregularities. SEBI noted that despite large fund collections and disproportionate trading volumes, the brokerage failed to conduct proper inspections. The regulator also identified instances where orders for multiple clients were being placed through the same IP and MAC addresses—a significant breach of standard compliance protocols.

Additionally, both authorised persons were found to be trading through other stockbrokers, a fact that Angel One reportedly failed to identify through its monitoring systems.

Settlement Without Admission of Guilt

Konuyu çözüme kavuşturmak için Angel One, 2025 yılında uzlaşma başvurularında bulundu. Standart düzenleyici uygulamalar doğrultusunda şirket, düzenleyicinin bulgularını kabul etmeden veya reddetmeden süreci uzlaşma yoluyla sonuçlandırmayı tercih etti.

SEBI'nin İç Komitesi ile yapılan görüşmelerin ardından, uzlaşma teklifi Yüksek Güçlü Danışma Komitesi ve Tam Zamanlı Üyeler heyeti tarafından onaylandı. Angel One, 22 Mayıs 2026 tarihinde 4,28 crore ₹ tutarındaki uzlaşma ücretini ödedi ve bu durum, SEBI Uzlaşma Süreçleri Yönetmeliği uyarınca soruşturma süreçlerinin resmi olarak sonuçlandırılmasını sağladı.

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