Angel One Settles Front-Running Allegations with SEBI

Angel One Ltd was accused of front-running trades based on impending orders from big clients. Allegations include failing to maintain proper trade records and compliance with SEBI norms. The firm settled the case by remitting a fee and implementing corrective measures.

Angel One Ltd faced allegations from SEBI involving front-running trades, executed based on impending orders from significant clients. These trades were allegedly conducted through the trading accounts of individuals related to the main accused, Jitendra Kewalramani.

The investigation revealed that the trades were executed without proper documentation, and signatures for order instructions were obtained post-trade, violating SEBI regulations. Furthermore, the stock broker failed to maintain a Voice Recording System to record client order placements.

After receiving a show-cause notice, Angel One instituted corrective measures and decided to settle by paying a fee of Rs 21.64 lakh. The firm pledged to prevent future violations through improved compliance protocols.

(With inputs from agencies.)