Sebi bans Sanjiv Bhasin, 11 others for stock manipulation, fraudulent gains

Business Standard

4 hours ago

Sebi on Tuesday barred Sanjiv Bhasin, a former director at IIFL Securities, and 11 others from the securities markets for indulging in share manipulation in a case pertaining to providing stock recommendations on media channels and other social media platforms.
Additionally, Sebi directed them to disgorge ill-gotten gains of Rs 11.37 crore.
In its 149-page interim order, Sebi noted that Bhasin was a well-known media guest expert with a huge following on social media. While associated with IIFL as a director or consultant, Bhasin provided stock recommendations through media channels, Telegram, and IIFL platforms.
Sebi's investigation revealed that prior to his appearances on media channels, Bhasin would take positions -- primarily buy orders-- in the trading accounts of Gemini Portfolios, Venus Portfolios, and HB Stock Holdings Ltd through dealers of the trading member RRB Master Securities Delhi Ltd.
Given the significant viewership of these channels, his stock recommendations had a considerable impact on the price and volume of the recommended scrips.
Capitalizing on this influence, Bhasin would then execute opposite trades (sell orders) in the same accounts, contrary to his public buy recommendations, to profit from the surge in prices of the recommended scrips.
Bhasin was employed with IIFL Securities in various capacities since 2015. He was employed with IIFL as a Director from April 1, 2017, to November 30, 2022. Thereafter, he was once again engaged with the company as a Consultant from December 1, 2022, to June 17, 2024.
A search and seizure operation conducted by Sebi on June 13-14, 2024, across multiple locations in NCR led to the discovery of critical evidence, including WhatsApp chats and audio recordings. These revealed the modus operandi used by Bhasin in operating the fraudulent scheme of creating contrary positions to his own recommendations in the form of BTST (Buy Today Sell Tomorrow) or intraday trades.
It was also revealed that Lalit Bhasin, cousin of Sanjiv Bhasin, aided him and, at times, assisted in placing the alleged fraudulent trades. Further, Ashish Kapur, Managing Director of RRB Master Securities Ltd, provided the necessary infrastructure and set-up to facilitate the scheme.
The investigation also revealed that several other connected entities misused confidential trade order information obtained directly or indirectly from Sanjiv Bhasin. By mirroring his trading strategy, these entities placed similar trades either in their own accounts or in accounts controlled by them, thereby making ill-gotten gains.
Sebi noted that Sanjiv Bhasin and others have been found to have violated provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practice) norms and research analyst rules, collectively making illegal gains amounting to Rs 11.37 crore.
Accordingly, the regulator has passed interim directions restraining them from accessing the securities market and prohibited them from buying, selling, or otherwise dealing in securities, directly or indirectly and asked them to disgorge the illegal gains.