Angel Broking | Business Upturn

SEBI fines Angel Broking Rs. 10 Lakh for violating operational guidelines & other regulations

Sakshi Vats — Mon, 01 May 2023 12:55:34 +0000

For violating a number of operational guidelines and circulars in its role as a stock broker and a depository participant, the Securities and Exchange Board of India (SEBI) fined Angel Broking Limited Rs 10 lakh.

While the fine may not be significant for a listed broker like Angel Broking, the attention given to the broking firm’s operational weaknesses does raise larger questions about broking firms and their operational procedures.

Based on the findings of a thorough joint examination that examined the activities of exchanges and depositories between December 7, 2020, and January 28, 2021, the market regulator filed actions against the stock broker. In September 2022, a showcause letter was sent to Angel Broking.

According to SEBI, Angel Broking exploited the money raised by pledging the securities of its clients for purposes other than those related to their obligations to those clients. Angel Broking has pledged securities of clients who had a credit balance in their ledger, and the misutilization was Rs. 32.97 crore, according to the adjudicating officer Amit Kapoor.

During the inspection period, SEBI noted that Angel Broking did not actually settle the funds of inactive clients. The market regulator noted 300 of these cases, with a non-settled total of Rs. 43.96 lakh.

Additionally, SEBI noted that Angel Broking did not actually settle the funds of customers who had not traded in the previous three months. The 1081 incidents were discovered by the market regulator, and the unpaid sum was Rs 16.65 lakh.

After January 16, 2020, it was found that Angel Broking kept the value of funds and securities to the extent of the value of turnover conducted on the day of settlement in the cash market segment (85 out of 200 occurrences were found to be not settled, with a total amount of Rs 10.26 crore being declared unsettled).

Angel Broking was found by SEBI to have neglected to perform regular reconciliation between DP accounts and back office data. With an absolute value of Rs. 1226.73 crore, there was a total quantity differential of 44.72 lakh.

Despite the non-recovery of debit balances, Angel Broking had provided exposure to the client beyond T+2+5 days in the amount of Rs 2.10 crore.

The broker informed the inspection team that MTM from the derivative segment position was taken into account when giving exposure. Angel Broking, however, could not offer any supporting documentation for its claims.

According to SEBI, there were 35,179 instances of PAN mismatch between TM back office records and UCC (unique client code). In 2,227 cases, it was found that the client email addresses in Angel Broking’s database did not correspond to the information in the exchange database. 2,336 instances of client phone numbers in Angel Broking’s database not matching the information in the exchange database were noted.

Additionally, for the month of October 2020 Angel Broking reported incorrect ledger balances for 30,602 clients to the exchange, with a net difference of Rs. 340.81 crore.

How to open a Demat account in India: Business Upturn

Arnav Dogra — Fri, 05 Mar 2021 06:24:56 +0000

The Government of India made the decision to go into lockdown in March 2020. Since then, brokerage companies have reported a major increase in the number of Demat Accounts opened with them which has been attributed to the free time people saved when they were working from home.

Demat, which is short for ‘dematerialized’, enables the owner to hold financial securities as equity or debt in an electronic form. It is an account where investors need to store the money they invest in the market, and the money they receive after they sell their positions.

As per data confirmed by MoneyControl, over 10 million Demat accounts were opened by individual investors in 2020. This phenomenon was not limited to India, as markets globally saw the participation of several new investors into the market.

Anyone above the age of 18 years is eligible to open a Demat account with various brokerages. To create a Demat Account, it is mandatory for the person to have a PAN Card, Bank Account, Identity and Address Proofs.

Opening a Demat Account is not difficult at all. It is perhaps easier to open a Demat Account than a Bank Account. An interested individual may choose any brokerage of their liking and can easily access the said brokerage’s websites/apps to open their Demat Account.

Home First Finance Company’s IPO received bids for 1.62 crore lakh

Sarthak Yadav — Thu, 21 Jan 2021 13:21:37 +0000

The initial public offer of Home First Finance Company India was fully subscribed today, which was the first day of bidding. The Rs 1,153 crore-initial public offering (IPO) of mortgage lender Home First Finance Company India Limited has been subscribed 79% so far.

The affordable housing finance company’s public issue received bids for 1.62 crore lakh equity shares against an offer size of more than 1.56 crore shares, data available on the exchanges showed.

The company already raised Rs 346 crore from anchor investors on January 20 and the issue size has been reduced to 1.56 crore shares (or Rs 880 crore) after fund-raising from the anchor book.

The portion reserved for retail investors has been subscribed 1.29 times and that of non-institutional investors 12.7%, while qualified institutional buyers’ portion set aside was subscribed 1.28 times.

The public issue comprises a fresh issue of Rs 265 crore and an offer for sale of Rs 888.71 crore by promoters True North Fund V LLP and Aether (Mauritius), investor Bessemer India Capital Holdings II Ltd, and two individual shareholders-PS Jayakumar and Manoj Viswanathan.

This is the third public offering of 2021, after IRFC and Indigo Paints.

As reported by Moneycontrol Jyoti Roy, DVP- Equity Strategist at Angel Broking, said, “At the higher end of the price band, the stock would be trading at P/BV of 3.6x fully diluted post issue book value of Rs 143.4 per share. We expect the company to post strong growth driven by strong demand for affordable housing. Given the growth prospects, we recommend a subscribe rating on the issue.”

Home First Finance has set a price band of Rs 517-518 per equity share, with a face value of Rs 2 each. The issue closes on January 25. Investors can bid in lots of 28 shares and multiples thereof. After the issue, Home First Finance’s implied market capitalisation could rise between Rs 4,518 crore and Rs 4,527 crore.

Incorporated on February 3, 2010, Home First Finance is an affordable housing finance company that targets first time home buyers in low- and mid-income groups. It primarily offers customers housing loans for the purchase or construction of homes, which comprised 92.1% of gross loan assets, as of September 30, 2020. Gross loan assets have grown at a CAGR of 63.4% between FY18-20 and increased to Rs 3,730.01 crore as of September 30, 2020.

Its net worth stood at Rs 988.2 crore as of 1H FY21. Home First Finance has a network of 70 branches covering over 60 districts in 11 states and a union territory in India, with a significant presence in the states of Gujarat, Maharashtra, Karnataka and Tamil Nadu.

Angel Broking subscribed 3.9 times on the final day of IPO

Divyaleen Manchanda — Sat, 26 Sep 2020 13:53:20 +0000

Angel Broking is looking forward to making its debut on October 5 after its Rs 600-crore initial public offering. It is one of the largest retail broking houses in the nation and it saw the lowest subscription among all the IPOs in 2020.

This IPO comprehended a fresh issue of Rs 300 crore and an offer for sale of Rs 300 crore by promoters and investors. The fresh issue proceeds will be used towards working capital requirements and other corporate purposes. The brokerage business accounts for 69.54% of revenue and 30.46% is contributed by lending activities.

Allotment status can be checked by investors on the BSE website and the registrar website by following the steps states below:

To check the Angel Broking allotment status, do the following:

1. Click on the BSE website link
2. Checkbox “Equity”
3. Select your “Issue Name” in the dropdown menu – Angel Broking (Note: Company name will appear only after the allotment process is done)
4. Type your “Application Number” in the box
5. Type your “Permanent Account Number (PAN No.)” in the box
6. Finally, click on the “Search” button.

Another way by which one can check their allotment status is by:

1. Visiting the registrar’s website, Link Intime India, to know the application status:
2. Select “Company Name” in the dropdown menu— Angel Broking (the company name will appear only after the allotment process is done)
3. Checkbox either “Permanent Account Number (PAN)” or “Application Number” or Depository/Client ID
4.Type your “Permanent Account Number (PAN )” or “Application Number” or Depository/Client ID in the box
5. Finally, click on the “Submit” button.

Angel Broking IPO to open on 22nd September at Rs 305-306 per share

Apurva Khairnar — Fri, 18 Sep 2020 12:09:05 +0000

Angel Broking’s initial public offer (IPO) will be opening on 22^nd September and close on 24^th September. The stock brokerage firm is planning to raise up to Rs. 600 crore in the three day share sell.

The three day share sale comprises of fresh issue of Rs. 300 crore by its promoters Ashok D Thakkar and Sunita A Magnani. Angel Broking has fixed price brand of Rs. 305-306 for its share sale.

Investors who are interested in buying the shares of the company can do so by biding in lot size of 49 shares and in the multiple thereof.

SBI Capital Markets and Link Intime are the registrars to the IPO while ICICI Securities and Edelweiss are the book running lead managers for the Angel Broking IPO.