New customer onboarding can happen through existing sub-brokers(APs) but they can’t add new sub-brokers to their platform. Before angel one went digital it had a vast network of offline sub-brokers through which they used to add new clients. Now it contributes around 30% to the overall revenue through these channels.
They have faced this penalty due to non-compliance and they were even warned before for this: Allegations about Angel One’s Poor Supervisory & Compliance Practices Regarding ‘Authorised Persons’, NSE Lets the Broker Off with a Warning
I don’t think it will have a significant impact on the business in the long run as existing sub-brokers can add new clients as well and this price crash might even be an opportunity.
However, they need to up their game w.r.t compliance as the business is entirely based on trust and complying with the regulators.
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