Angel One settles Sebi proceedings over lapses in monitoring authorised persons, pays Rs 4.28 crore

Brokerage firm Angel One has settled adjudication and enquiry proceedings initiated by capital markets regulator Sebi after paying a settlement amount of Rs 4.28 crore, according to a settlement order issued by the regulator on Monday.

The proceedings related to alleged lapses by the company in monitoring and supervising the activities of two authorised persons (APs), Deepankar Barman and Nadella Srinivas Rao.

Sebi had issued separate show-cause notices in May 2025 under adjudication and intermediary regulations, alleging that Angel One failed to adequately identify and act on violations committed by the authorised persons.

According to the order, SEBI alleged that Angel One failed to detect unauthorised fund collection activities, did not conduct proper due diligence during inspections, and failed to take appropriate action despite disproportionate trading patterns by the authorised persons.

The regulator also alleged that the brokerage did not adequately scrutinise unauthorised social media activities by one of the authorised persons, including alleged promises of assured returns, unauthorised portfolio management activities and use of Angel One’s brand name and logo.

In the case of Nadella Srinivas Rao, SEBI alleged that Angel One failed to conduct inspections despite large fund collections and disproportionate trading activity. The regulator also flagged instances where orders were allegedly placed for multiple clients through the same IP and MAC addresses.Sebi further alleged that both authorised persons were trading through other stock brokers, which the company failed to identify.Pending the proceedings, Angel One filed settlement applications in 2025 without admitting or denying the findings.

Following discussions with Sebi’s Internal Committee, the company agreed to pay Rs 4.28 crore as settlement charges. The proposal was subsequently approved by Sebi’s High Powered Advisory Committee and a panel of Whole Time Members.

The brokerage remitted the settlement amount on May 22, 2026. As a result, the adjudication and enquiry proceedings have been disposed of under the Sebi Settlement Proceedings Regulations.