Proceedings regarding alleged lapses by the company in monitoring and supervising the activities of two Authorized Persons (APs), Dipankar Burman and Nadela Srinivas Rao.
Sebi issued separate show-cause notices under the Adjudication and Arbitration Rules in May 2025, alleging that Angel One failed to adequately identify and act on violations committed by authorized persons.
According to the order, SEBI alleged that Angel One failed to detect unauthorized fundraising activities, did not exercise due diligence during inspections and failed to take appropriate action despite disproportionate trading patterns by authorized persons.
The regulator also alleged that the brokerage did not adequately investigate unauthorized social media activities by one of the authorized persons, including alleged promises of guaranteed returns, unauthorized portfolio management activities and use of Angel One’s brand name and logo.
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In the Nadella Srinivasa Rao case, Sebi alleged that Angel One failed to monitor despite large fund collections and disproportionate trading activity. The regulator also flagged cases where orders were allegedly placed for multiple clients through the same IP and MAC address.
Sebi further alleged that both the authorized persons were trading through other stock brokers, which the company failed to identify.
Pending the proceedings, Angel One filed settlement applications in 2025 without accepting or denying the findings.
After discussions with SEBI’s internal committee, the company settled as settlement charge of Rs. 4.28 crore was agreed to be paid. The proposal was then 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. Consequently, the adjudication and investigation proceedings have been disposed of under the SEBI Settlement Proceedings Regulations.
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