Last week, Angel One announced an increase in its first-quarter profit.
Angel One stated that the NSE order does not impact their current business or the activities of their affiliated APs.
On Monday, Angel One’s shares experienced a 5.2% decline following a decision by the country’s primary stock exchange, the National Stock Exchange of India (NSE). The exchange banned Angel One from bringing on new authorised individuals for six months and imposed penalties due to allegations of inadequate monitoring of its existing personnel.
Over the weekend, the NSE fined the Mumbai-based brokerage firm, Angel One, Rs 1.67 crore (equivalent to over $203,000). Furthermore, it instructed the company to conduct inspections of all its current authorised persons (APs) and provide reports on the inspections conducted, along with investor complaints received during the year preceding the order date.
Earlier in the day, the shares of the company experienced a significant decline, dropping as much as 6.7% to Rs 1,593.45 per share. This marked their largest intraday percentage decrease since March 20.
According to the NSE’s website, an authorised person acts as an agent of a stockbroker, providing access to a stock exchange’s trading platform. In a statement referring to the order, the company acknowledged that the exchange imposed penalties on them, citing alleged violations of market regulations resulting from their failure to adequately monitor the operations of their APs.
Angel One stated that the order does not impact their current business or the activities of their affiliated APs. The company mentioned that it is assessing various options, which may include filing an appeal against the order.
Last week, Angel One announced an increase in its first-quarter profit, primarily attributed to significant growth in client additions and orders.
On Monday, Angel One’s share price experienced a decline of over 7% in early trade. This drop followed the National Stock Exchange of India’s decision to prohibit the brokerage firm from onboarding new APs for a period of six months. The stock fell as much as 7.17% to an intraday low of ₹1,585.00 per share on the BSE.
Angel One Limited, previously known as Angel Broking Limited, is an Indian stockbroker firm that was established in 1996. Initially incorporated on August 8, 1996, as a private limited company, it expanded its operations in September 1997 to encompass wealth management, retail and corporate broking services. In November 1998, Angel Capital and Debt Market Ltd., a subsidiary, became a member of the National Stock Exchange as a legal entity.
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