The Securities and Exchange Board of India (SEBI) has settled a front-running case involving Angel One Limited through a settlement order on September 27, 2024. The case revolves around allegations of front-running the orders of major clients, including the Bharat Kanaiyalal Sheth Family Trust, by an Angel One employee, Jitendra Kewalramani. Kewalramani, an Authorized Person (AP) of Angel One, was accused of executing trades ahead of client orders based on confidential information.
SEBI’s investigation, covering the period from January 2021 to October 2022, revealed that Kewalramani had allegedly placed trades in his own account and the accounts of associated entities, leveraging knowledge of large client orders. The investigation also highlighted that most of these trades were executed through Angel One, with Kewalramani accused of violating SEBI regulations by failing to maintain proper order records.
Following a show-cause notice issued in April 2024, Angel One submitted a settlement application to SEBI in May 2024, proposing to settle the case without admitting or denying the findings. After negotiations with SEBI’s Internal Committee, Angel One agreed to pay a settlement amount of ₹21.64 lakh. The settlement application included corrective measures implemented by the company to prevent similar violations in the future.
The High Powered Advisory Committee (HPAC) approved the settlement in August 2024, and SEBI’s Panel of Whole Time Members accepted the terms on September 12, 2024. Angel One completed the payment on September 23, 2024, effectively concluding the matter.
SEBI has clarified that no further enforcement action will be taken against Angel One for this case, provided the terms of the settlement are upheld. However, SEBI reserves the right to initiate future action if any representations are found to be untrue or if the settlement terms are breached.
This settlement order brings closure to one of SEBI’s high-profile front-running cases involving a major stockbroker in the Indian market.
