Angel One, a prominent stockbroking firm, is grappling with the repercussions of a penalty imposed by the National Stock Exchange (NSE). The NSE’s Member and Core Settlement Guarantee Fund Committee (MCSGFC) issued an order on July 14, prohibiting Angel One from onboarding new authorized persons (APs) for a period of six months. The penalty comes in response to alleged failures in adequately monitoring the operations of existing APs.
As a result of the penalty, Angel One’s shares experienced a significant decline, plummeting by as much as 7%. However, the company clarified that the NSE’s order does not impact its existing business or the activities of its affiliated APs. Angel One is currently assessing various options, including the possibility of filing an appeal against the order.
The penalty imposed by the NSE includes a monetary fine of Rs 1.67 crore. Additionally, the brokerage firm is required to conduct an inspection of all its APs and submit a report to the NSE within six months. The report should encompass details regarding the investor grievance redressal mechanism, including the number of complaints and arbitration matters registered against the company and its APs in the past year.
Despite the setback, industry experts believe that the order’s impact on Angel One’s business operations will be limited, as it does not affect its existing business or affiliated APs. They also emphasize that the company can pursue legal recourse and that the final outcome of the situation will take time. Market analysts remain positive about Angel One’s overall prospects, citing recent robust quarterly results and the company’s expanding financial services offerings.