Angel One shares slip after NSE Indian stock exchange slaps penalty

The NSE ordered the company to inspect all its existing authorised persons (APs) and submit reports on the inspection and investor complaints from the year before the order date. File.
| Photo Credit: The Hindu

Shares of Angel One are down 5.2% on July 17 after the National Stock Exchange (NSE) prohibited the stockbroker from onboarding new authorised persons for six months and imposed penalties, alleging failure to monitor the operations of existing ones.

The Mumbai-based brokerage firm said the NSE over the weekend also imposed a monetary penalty of ₹1,670 crore.

Further, the NSE ordered the company to inspect all its existing authorised persons (APs) and submit reports on the inspection and investor complaints from the year before the order date.

Shares of the company fell as much as 6.7% to ₹1,593.45 rupees apiece earlier in the day, logging their steepest intraday percentage decline since March 20.

An authorised person is an entity that provides access to a stock exchange’s trading platform as an agent of a stock broker, per NSE’s website.

The exchange has imposed penalties, citing alleged violations of market regulations as a result of the company’s failure to monitor the operations of its APs, the company said in a statement referring to the order.

“The order does not affect the existing business or the activities of the APs affiliated with the company,” Angel One said, adding that it is evaluating options, including filing an appeal against the order.

Angel One reported a rise in its first-quarter profit last week, led by surging client additions and orders.