Angel Broking Settles SEBI Case By Paying Nearly Rs 32 Lakh
SEBI conducted an inspection of Angel Broking’s books of accounts during September 19-23 and October 19-21 in 2016.
Stockbroker Angel Broking Ltd. has settled a case of alleged misutilisation and non-settlement of clients' fund with Securities and Exchange Board of India by paying nearly Rs 32 lakh as settlement charges.
SEBI conducted an inspection of Angel Broking’s books of accounts during September 19-23 and October 19-21 in 2016 and observed the stockbroker "met the pay-in obligation of clients having debit balance from funds of clients having credit balance".
Angel Broking was not settling the running accounts of inactive clients periodically, SEBI found. This amounted to a violation of the code of conduct for stockbrokers. Accordingly, adjudicating proceedings were initiated against Angel Broking and a showcause notice was sent on March 20, 2019.
Following this, Angel Broking proposed to pay Rs 31,87,500 as settlement charges, without admitting or denying the findings. The amount was approved by a panel of whole-time members of the capital markets regulator.
Subsequently, "the instant adjudication proceedings initiated against the applicant (Angel Broking) through a showcause notice dated March 20, 2019, are disposed of," SEBI said on Monday.
Enforcement actions, including restoring or initiating the proceedings, could be initiated if any representation made by Angel Broking is found to be untrue, SEBI said.