Angel One Ltd. has settled regulatory proceedings initiated by the Securities and Exchange Board of India (SEBI) by paying Rs 4.28 crore, bringing to a close a case related to alleged oversight lapses involving two of its sub-brokers.
The settlement was reached without Angel One admitting or denying the findings and allegations made by the market regulator. The order effectively disposes of SEBI's pending adjudication and broker licence-related proceedings against the company in connection with the matter.
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SEBI's investigation focused on whether Angel One had exercised adequate supervision over the activities of certain authorised persons and sub-brokers operating under its network. According to the regulator, the brokerage failed to detect and prevent multiple compliance breaches allegedly committed by the entities under scrutiny.
Among the concerns flagged by SEBI was the alleged unauthorised collection of funds by a sub-broker from clients, a practice that violates regulatory norms governing intermediary conduct. The regulator also alleged that Angel One failed to identify suspicious trading activities carried out by certain authorised persons associated with the brokerage.
In addition, SEBI said one of the sub-brokers had promoted assured-return investment schemes through social media platforms, despite such claims being prohibited under securities market regulations. The regulator further alleged that Angel One did not take adequate measures to prevent the misuse of its brand name and market presence in connection with these activities.
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The settlement allows Angel One to resolve the matter without undergoing a prolonged enforcement process. However, the regulator clarified that the settlement does not amount to an exoneration of the company and does not constitute a finding on the merits of the allegations.
SEBI also retained the right to reopen the proceedings if it is later found that the company made incomplete or inaccurate disclosures during the settlement process or if any terms of the settlement are violated.
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