Stockbroking firm Angel One witnessed a significant intraday decline of nearly seven percent in its share prices on Monday. As of 10:03 am, Angel One shares were trading at Rs 1,621, reflecting a decline of 5.06 percent from the previous day's closing price on the BSE.

Share Market Live

NSE

This decline was prompted by an order issued on July 14 by the Member and Core Settlement Guarantee Fund Committee (MCSGFC) of the National Stock Exchange of India Limited (NSE). The order prohibits Angel One from onboarding new authorised persons (APs) for a period of six months.

The reason behind this action was the alleged failure of Angel One to adequately supervise the operations of its existing APs. APs are essentially sub-brokers, who function as representatives of stock brokers, facilitating the purchase, sale, or trading of securities on behalf of investors through these brokers. As per SEBI regulations, a stock broker can appoint one or more APs, but they must obtain explicit prior approval from the relevant stock exchange for each individual.

Angel One has clarified that the order does not impact its current business or the activities of its affiliated APs. The company is actively assessing available options, including the possibility of filing an appeal against the order.

In addition, the NSE has instructed Angel One to conduct thorough inspections of all its APs. The company is required to complete these inspections and submit a comprehensive report to the exchange within a six-month timeframe.

Also read: Angel One shares drop despite numbers bettering analyst estimates; high expenses weigh