sebi:QJA/AB/MIRSD/MIRSD3/28840/2023-24
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Provisions invoked
- s. 19
- s. 12(3)
Regulations
- Reg. 6
- Reg. 9
- Reg. 9(f)
- Reg. 25
- Reg. 27
- Reg. 26(1)
- Reg. 27(5)
Parties
- Angel One Limited (Earlier known as Angel Broking Private Limited)
Holding
The Adjudicating Officer found that allegations of failure to verify mobile numbers/email IDs with original documents and lack of due diligence in dealing with bogus entities did not stand established, and further found merit in the noticee's contention that the DA had not adequately established suspiciousness of the transactions of the 26 clients given that most trading turnover comprised sale of already-owned dematerialized shares.
Full text
Order in respect of Angel One Limited (Earlier known as Angel Broking Private Limited) Page 2 of 30 the investigation that the noticee had allegedly failed to exercise due skill, care, diligence, professionalism and efficiency by: i. not putting in place a procedure for client introduction; ii. not having a system to verify mobile numbers and email IDs of clients with any original documents; iii. not filing the suspicious transaction report (hereinafter referred to as “STR”) for transactions entered into by 26 of its clients to the Financial Intelligence Unit (hereinafter referred to as the “FIU”); iv. not capturing the details of the place where the Know Your Customer (hereinafter referred to as “KYC”) forms were filled in a proper manner; v. accepting orders from persons not authorized by the clients; and vi. showing lack of diligence while dealing with the bogus entities, including Mr, Anil Purshottam Atre (hereinafter referred to as “Mr. Atre”).
Order in respect of Angel One Limited (Earlier known as Angel Broking Private Limited) Page 3 of 30 a. The DA has observed that the allegations mentioned at para 2(i) and (ii) above, i.e., the noticee failed to exercise due skill, care, diligence, professionalism and efficiency on account of not having a procedure for client introduction and not having a system to verify mobile numbers and email IDs of clients with any original documents do not stand established.
Order in respect of Angel One Limited (Earlier known as Angel Broking Private Limited) Page 4 of 30 6. Accordingly, the DA recommended that the Certificate of Registration of the noticee (bearing no. INZ000161534), as a broker, may be suspended for a period of three months. The relevant excerpt of the Report is produced hereunder:
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:QJA/AB/MIRSD/MIRSD3/28840/2023-24. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.