Angel One Settles Front-running Trade Case By Paying Rs 22 lakh

Angel One has settled an alleged front-running case with SEBI by paying settlement charges of Rs 21.64 lakh. The case stemmed from a SEBI investigation into violations of Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) rules during the period between January 2021 and October 2022. It was found that Jitendra Kewalramani, an authorised person (AP) of Angel One, had access to upcoming orders from big clients, including Bharat Kanaiyalal Sheth Family Trust, and was involved in front-running trades through his own and related accounts.

SEBI’s investigation revealed that Kewalramani did not maintain records of pre-order placements as required. Signatures for order instructions were obtained after orders were executed. The regulator also noted that Angel One failed to comply with statutory requirements by not keeping proper records such as a Voice Recording System (VRS) or time-stamped order sheets.

On May 15, 2024, Angel One filed for settlement, proposing to resolve the issue without admitting or denying SEBI’s findings. Following the remittance of the settlement fee and implementation of corrective measures, SEBI closed the proceedings against Angel One.