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

Leading brokerage firm Angel One has resolved its legal disputes with the capital markets regulator, SEBI, by paying a settlement amount of ₹4.28 crore. The settlement follows investigations into the firm's failure to adequately supervise the activities of two specific authorised persons (APs).

Details of the Regulatory Lapses

The proceedings initiated by SEBI centered on allegations that Angel One failed to maintain rigorous oversight of two authorised persons, Deepankar Barman and Nadella Srinivas Rao. The regulator issued show-cause notices in May 2025, alleging that the brokerage did not implement sufficient checks to identify and curb violations committed by these intermediaries.

The core of the regulator's concern rested on the company's inability to detect unauthorised fund collection activities. Furthermore, SEBI noted that Angel One did not conduct the required due diligence during inspections, even when trading patterns exhibited significant disproportionate activity that should have triggered internal red flags.

Social Media Misconduct and Operational Red Flags

One of the most critical aspects of the investigation involved the unauthorised social media conduct of one of the authorised persons. SEBI alleged that the individual used the Angel One brand name and logo to engage in unauthorized portfolio management activities and made illegal promises of "assured returns" to potential clients.

In the specific case of Nadella Srinivas Rao, the regulator flagged serious operational irregularities. These included large-scale fund collections and disproportionate trading volumes that went uninspected by the brokerage. Additionally, SEBI highlighted technical red flags where orders for multiple different clients were being placed through the same IP and MAC addresses, suggesting a lack of individual client segregation.

Settlement Without Admission of Guilt

To resolve the matter, Angel One filed settlement applications in 2025. Notably, the company opted for this route without admitting or denying the specific findings of wrongdoing presented by the regulator.

Пропозиція про врегулювання пройшла суворий процес розгляду, будучи обговореною Внутрішнім комітетом SEBI перед отриманням остаточного схвалення від Консультативного комітету з високим рівнем повноважень та панелі Повноправних членів. Після офіційного схвалення компанія Angel One перерахувала збір за врегулювання у розмірі 4,28 крор рупій 22 травня 2026 року. З цією оплатою судові та слідчі провадження були офіційно завершені відповідно до Регламенту SEBI про процедури врегулювання.

Основні висновки