Angel One barred from onboarding new Authorised Persons for 6 months

economictimes.indiatimes.com:

Angel One has been from onboarding new authorised persons (APs) for alleged failure to monitor the operations of its APs. Authorised persons act as the contact point between the investors and the stockbrokers to facilitate the entire investment process. They engage under stockbrokers to extend investment facilities to investors.

The order was passed by a committee set up by the National Stock Exchange (NSE) of India. The prohibition from onboarding new APs is for a period of 6 months from the date of the Order Further, a monetary penalty of Rs 1.66 crore has also been imposed on the broker. The NSE directed Angel One to conduct an inspection of all its APs and submit a report to the satisfaction of the exchange within six months.

In addition, the broking firm has also been directed to submit a detailed report on its investor grievance redressal mechanism comprising total investor complaints and arbitration matters registered against the company and its APs in the past 1 year from the date of this order, including those pertaining to assured returns and unauthorized trading. Angel One said the order does not affect the existing business or the activities of the APs affiliated with the company. «We are evaluating various options available including filing an appeal against the order.

We have always strived to and carried out its business in compliance with extant laws and regulations in letter and spirit,» the company said. Angel One has recently reported first-quarter results, in which its consolidated net profit rose 22% to Rs 221 crore, while revenue from operations was up 18% at Rs 807 crore. Interest income for the first quarter came in at Rs 145 crore, higher by 20% as against Rs 121 crore in the previous year's