Angel One Settles SEBI Adjudication Proceedings with Rs 4.28 Crore Payment
Brokerage firm Angel One has resolved adjudication and enquiry proceedings initiated by the Securities and Exchange Board of India (SEBI) after paying a settlement amount of Rs 4.28 crore, according to a settlement order issued by the regulator on Monday. The case centered on alleged failures in monitoring two authorized persons, Deepankar Barman and Nadella Srinivas Rao.
Allegations Against Angel One
SEBI alleged that Angel One failed to detect unauthorized fund collection activities and did not conduct proper due diligence during inspections involving Barman and Rao. The regulator also cited disproportionate trading patterns and unauthorised social media activities, including promises of assured returns and misuse of the firm’s brand name and logo, according to the settlement order.
In the case of Nadella Srinivas Rao, SEBI highlighted large fund collections and disproportionate trading activity that the brokerage allegedly failed to inspect. The regulator noted instances of orders placed for multiple clients through the same IP and MAC addresses, as well as trading through other stock brokers that Angel One did not identify.
Settlement Process and Approval
Angel One filed settlement applications in 2025 without admitting or denying the allegations. Following discussions with SEBI’s Internal Committee, the firm agreed to pay Rs 4.28 crore as settlement charges. The proposal was approved by SEBI’s High Powered Advisory Committee and a panel of Whole Time Members. The payment was made on May 22, 2026, leading to the disposal of the proceedings under SEBI Settlement Proceedings Regulations.
Implications for the Brokerage Industry
The settlement underscores SEBI’s focus on accountability for intermediaries in detecting and reporting violations. Regulatory experts note that such cases highlight the need for stricter oversight of authorized persons and improved internal compliance frameworks. “Firms must ensure rigorous monitoring of trading activities and social media usage by their representatives,” said a spokesperson for the Indian Institute of Capital Markets.
Angel One’s case follows a series of similar penalties imposed on financial institutions in recent years. For example, in 2023, another major broker was fined Rs 5 crore for similar lapses in monitoring client activities, according to SEBI’s public records.
What Happens Next?
SEBI has not indicated plans for further action against Angel One, as the proceedings have been formally closed. However, the case serves as a cautionary example for other firms. “This settlement reinforces the importance of proactive compliance,” said a regulatory analyst at Morningstar India. “Firms that neglect these responsibilities risk significant financial and reputational consequences.”