Angel One pays Rs 4.28 crore to settle Sebi case

Brokerage firm Angel One has settled Sebi proceedings related to alleged lapses in monitoring authorised persons by paying Rs 4.28 crore. The regulator's case involved issues such as unauthorised fund collection, disproportionate trading and social media promotions

New Delhi: Brokerage firm Angel One has settled with capital markets regulator Sebi a case related to alleged violations of stock broker regulations by paying Rs 4.28 crore.

The case pertained to alleged lapses in supervision and due diligence by the brokerage in monitoring the activities of two authorised persons, including failure to detect unauthorised fund collection, disproportionate trading, unauthorised social media promotions and trading through other stock brokers.

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According to an order issued by Sebi on Monday, Angel One filed settlement applications proposing to resolve both adjudication and enquiry proceedings initiated through separate show-cause notices issued on May 14, 2025, “without admission of liability or guilt”.

The proceedings were based on observations linked to two authorised persons – Deepankar Barman and Nadella Srinivas Rao.

Sebi alleged that the brokerage failed to identify unauthorised fund collection activities, did not carry out adequate due diligence into fund movements, failed to take appropriate action in cases of disproportionate trading, and did not properly scrutinise unauthorised social media activities that allegedly promised assured returns and used the broker’s brand name and logo.

The regulator also alleged that Angel One failed to detect that the authorised persons were trading through other stock brokers and did not adequately investigate instances where multiple clients linked to an authorised person placed orders through the same IP and MAC addresses.

Following discussions with the regulator’s committees, Angel One agreed to pay Rs 4.28 crore as a settlement amount.

“In view of the receipt of the settlement amount by Sebi, the instant adjudication and enquiry proceedings initiated against the noticee viz – Angel One Limited – are hereby disposed of,” the regulator said in its settlement order.