NSE imposes fine on Angel One, bans from onboarding new authorised persons for 6 mths; shares slump 7 pc

New Delhi, Jul 17 (PTI) Brokerage house Angel One Ltd has said National Stock Exchange (NSE) has barred it from onboarding new authorised persons (APs) for six months and imposed a Rs 1.67 crore penalty for flouting norms.

Reacting to this, shares of Angel One plunged more than seven per cent in intra-day trade.

The Member and Core Settlement Guarantee Fund Committee of NSE passed an order on July 14 against the broking company for an alleged failure to monitor the operations of its APs, Angel One said in a regulatory filing to the stock exchanges on Saturday.

By doing so, it allegedly flouted the capital market segment rules and Futures and Options segment norms of the NSE.

As per the order, a monetary penalty of Rs 1.67 crore has been levied on the broking company. In addition, it has prohibited “from onboarding new APs for a period of 6 months”.

Authorised person means any — individual, partnership firm OR LLP — who is appointed as such by a stockbroker and who provides access to the trading platform of a stock exchange as an agent of the stockbroker, as per the exchanges’ websites

Further, the Mumbai-based brokerage house has been directed to conduct an inspection of all its APs and submit a report to the exchange within 6 months.

In addition, it was asked to submit a detailed report on its investor grievance redressal mechanism, consisting of a total number of investor complaints and arbitration matters registered against the company and its APs in the past one year, including those pertaining to assured returns and unauthorised trading.

Also, the detailed report should comprise total investor complaints and arbitration matters resolved in the past one year and the timelines for the same; as well as total pending investor complaints and arbitration matters.

However, Angel One said, the NSE’s order does not affect the existing business or the activities of the APs affiliated with the company. Further, the firm is evaluating various options, including filing an appeal against the order.