Angel One share price tanked 7% to Rs 1,585 today after the National Stock Exchange of India (NSE) barred the brokerage firm from onboarding new Authorised Persons (APs) for a period of six months. The ban on Angel One was pronounced in an order dated July 14, by the Member and Core Settlement Guarantee Fund Committee of the NSE. The order comes after the broking firm’s alleged failure to monitor the operations of its APs, thereby resulting in an alleged violation of the Capital Market Segment Regulations and Futures and Options Segment Regulations of the Exchange.
The exchange has also slapped the brokerage house’s monetary penalty of Rs 1.67 crore. NSE has further directed Angel One to conduct an inspection of all its APs and submit a report within six months. However, the brokerage firm said the order does not affect the existing business or the activities of the APs affiliated with the company. “The Company is evaluating various options available including filing an appeal against the Order. The Company has always strived to and carried out its business in compliance with extant laws and regulations in letter and spirit,” Angel One said.