SEBI restrains former IIFL director Sanjiv Bhasin from markets for stock manipulation

Indian Express

10 hours ago

The Securities Exchange Board of India (SEBI) on Tuesday barred Sanjiv Bhasin, a former director at IIFL Securities Ltd (IIFL) and 10 other entities from the securities market for alleged stock manipulation by providing recommendations on news channels and social media platforms.
In the interim order, the regulator also directed to impound a total amount of Rs 11.37 crore gained by these entities through unlawful activities.
Others who have been restrained from markets include Lalit Bhasin, cousin of Sanjiv Bhasin, Ashish Kapur, Rajiv Kapoor, Jagat Singh, Praveen Gupta, Venus Portfolios Private Ltd, Gemini Portfolios Pvt Ltd, HB Stockholdings Ltd, Leo Portfolios Pvt Ltd and Babita Gupta.
'Sanjiv Bhasin, a (former) director at IIFL Securities Ltd, traded through a broker viz. RRB Master Securities Delhi Limited wherein he used to first buy securities himself, then used to recommend the same securities to the public on news channels like 'Zee Business' and 'ET Now', and/or IIFL Telegram channel, to buy the same securities,' SEBI said in the interim order.
Once prices of securities increased after his recommendations, Bhasin used to sell the securities, thereby making a profit. Accordingly, Sanjiv Bhasin manipulated the price of securities and made ill-gotten gains, the order stated.
Sanjiv Bhasin was employed with IIFL from April 1, 2017 to November 30, 2022 as 'Director' of IIFL. Subsequently, from December 1, 2022 to June 17, 2024, he was once again associated with IIFL as a consultant wherein, he used to give trading/investment views on stocks, which used to be circulated/broadcasted to all clients of IIFL.
When contacted, IIFL Securities said that Sanjiv Bhasin was associated with the company as a consultant on contractual basis. His term was to end on June 30, 2024. However, due to health reasons, his contract has been discontinued prematurely with effect from June 17, 2024.
'Sanjiv Bhasin informed us about SEBI's enquiry but the details of the same was not disclosed to us,' IIFL said, adding that he was not a member of the board of directors of IIFL Securities Ltd or any other group company or affiliates.
SEBI's investigation revealed that, prior to his appearances on media channels, Sanjiv Bhasin would take positions—primarily buy orders—in the trading accounts of Gemini Portfolios Ltd, Venus Portfolios Ltd, and HB Stock Holdings Ltd, through dealers of the trading member RRB Master Securities Ltd., Delhi.
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.
The order said the investigation, which was conducted from January 01, 2020 to June 12, 2024, revealed that several other connected entities misused the trade orders related to confidential information obtained directly / indirectly from Sanjiv Bhasin.
Accordingly, by mirroring Sanjiv Bhasin's trading strategy, these entities placed similar trades either in their own trading accounts or in the trading accounts controlled by them and made ill-gotten gains, the order said.