The proceedings stemmed from alleged deficiencies in the brokerage’s supervision and due diligence relating to the activities of two authorised persons, Deepankar Barman and Nadella Srinivas Rao.
SEBI alleged that Angel One failed to adequately monitor and detect unauthorised fund collection activities, did not conduct sufficient due diligence into fund movements, and failed to take appropriate action in instances of disproportionate trading by clients linked to the authorised persons.
The regulator also flagged alleged lapses in monitoring unauthorised social media activities, where assurances of returns were purportedly made using the brokerage’s brand name and logo. In addition, SEBI alleged that the broker failed to detect that the authorised persons were trading through other stockbrokers and did not sufficiently investigate cases where multiple clients linked to an authorised person placed orders using the same IP and MAC addresses.
Angel One filed settlement applications seeking to resolve both adjudication and enquiry proceedings initiated through separate show-cause notices issued on May 14, 2025. The company proposed to settle the matter “without admission of liability or guilt”.
Following deliberations with SEBI’s internal committees, the brokerage agreed to pay a settlement amount of ₹4.28 crore.
“In view of the receipt of the settlement amount by SEBI, the instant adjudication and enquiry proceedings initiated against the noticee, Angel One Limited, are hereby disposed of,” the regulator said in its order.
The settlement brings to a close regulatory proceedings related to the brokerage’s oversight of the activities of the two authorised persons, without any admission of wrongdoing by the company.
