Angel One Settles SEBI Proceedings Over Alleged Supervisory Lapses, Pays ₹4.28 Crore

Stockbroker Angel One Limited has settled adjudication and enquiry proceedings initiated by the Securities and Exchange Board of India. The settlement follows payment of ₹4.28 crore in relation to allegations concerning its handling of certain activities of two authorised persons.

In the order passed on Monday, SEBI Adjudicating Officer and Designated Authority Medha Sonparote observed: "In view of the receipt of settlement amount by SEBI, the instant Adjudication and Enquiry Proceedings initiated against the Noticee viz., Angel One Limited vide aforesaid Adjudication SCN and Enquiry SCN dated May 14, 2025, are hereby disposed of in terms of Section 15JB of the SEBI Act, 1992 read with Regulation 23(1) of SEBI (Settlement Proceedings) Regulations, 2018."

The proceedings arose from two show-cause notices issued to Angel One on May 14, 2025. The notices contained allegations relating to the activities of authorised persons Deepankar Barman and Nadella Srinivas Rao and the broker's handling of those matters.

According to the allegations recorded in the notices, Angel One failed to identify unauthorised fund collection activity by an authorised person. It was also alleged to have closed an inspection observation relating to fund movement without carrying out proper diligence.

The notices further alleged that the broker did not take proper action in relation to disproportionate trading. Another allegation was that it failed to scrutinise unauthorised social media activities of an authorised person, including activities promising assured returns and the use of the broker's brand name and logo.

SEBI also alleged that Angel One failed to identify that authorised persons were trading through other stock brokers.

In relation to Nadella Srinivas Rao, the notices alleged that the broker failed to conduct an inspection despite disproportionate trading and substantial collections of funds in a bank account. Angel One was also accused of not taking action regarding the placement of orders by the authorised person and multiple clients mapped to him through the same IP and MAC addresses.

While the proceedings were pending, Angel One filed settlement applications under the SEBI (Settlement Proceedings) Regulations, 2018 without admission of liability or guilt.

The applications were considered by SEBI's Internal Committee, which proposed a settlement amount of ₹4,28,01,600. Angel One accepted the proposal and submitted revised settlement terms offering the same amount.

The matter was thereafter placed before the High Powered Advisory Committee, which recommended acceptance of the proposed settlement amount. The recommendation was subsequently accepted by the Panel of Whole Time Members.

Following issuance of a demand notice, Angel One remitted ₹4,28,01,600. SEBI thereafter confirmed receipt of the payment.

The order records that the settlement was arrived at without examination of the legal and factual issues involved in the proceedings.

The regulator also clarified that the settlement would not affect its right to restore or initiate proceedings in specified circumstances.

Those circumstances include cases where the applicant has not made full and true disclosure, has violated undertakings or waivers, or where a discrepancy is discovered in arriving at the settlement terms.