Share prices of Angel One plunged over 7% in early trade of July 17 after the National Stock Exchange (NSE) of India precluded the brokerage firm from onboarding new Authorized Persons (APs) for six months.

The stock took a hit for as much as 7.16% to an intraday low of Rs 1,586.00 apiece on the NSE.

The firm received an order on July 14 from the Member and Core Settlement Guarantee Fund Committee of the National Stock Exchange of India Ltd prohibiting them from onboarding a new Authorized Person for six months.

The order was issued after the brokerage firm allegedly failed to monitor the operations of its APs, thereby resulting in an alleged violation of the Capital Market Segment Regulations and Futures and Options Segment Regulations of the Exchange.

The firm was also slapped with a monetary penalty of Rs 1.67 crore.

The company was further directed to conduct an internal inspection of all its APs and submit the report within six months.

“The Company is evaluating various options, including filing an appeal against the order. The company has always strived to and carried out its business in compliance with extant laws and regulations in letter and spirit,” Angel One said.

APs are market intermediaries acting as the contact point between investors and stockbrokers,

The AP accounts for 21% of Angel One’s net brokerage revenue and 25% of new customer acquisition.

At 10:15 am, the share of Angel One was trading 5.13% below its previous close of Rs 1,707.50.