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Shares of Angel One fell 5.2% on Monday after the nation’s main stock exchange banned a stockbroker from onboarding new authorized persons for six months and imposed penalties, allegedly for failing to monitor the operations of existing companies.
The Mumbai-based brokerage said the National Stock Exchange of India also imposed a fine of 16.7 million rupees (more than $203,000) over the weekend.
Further, the NSE ordered the company to inspect all existing Approved Persons (APs) and to submit reports on inspection and investor complaints from the year prior to the date of the order.
Shares of the company fell 6.7% to 1,593.45 rupees a piece earlier in the day, marking the biggest intraday drop in percentage terms since March 20.
An authorized person is an entity that provides access to a stock exchange trading platform as an agent for a securities broker, according to the NSE website.
The exchange imposed the sanctions, the company said in a statement referring to the matter, citing alleged violations of market regulations as a result of the company’s failure to monitor the operations of its access points.
“The order does not affect existing business or the activities of the Company’s APs,” Angel One said, adding that it is evaluating options, including filing an appeal against the order.
Angel One last week reported an uptick in its first-quarter earnings, driven by higher additional customer orders and orders.
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