SEBI Investigates Sanjiv Bhasin of IIFL Securities
SEBI investigates Sanjiv Bhasin of IIFL Securities for alleged market manipulation via stock recommendations on TV, prompting reduced appearances.
The Securities and Exchange Board of India (SEBI) is actively investigating Sanjiv Bhasin, formerly associated with IIFL Securities, for alleged market manipulation. Bhasin, a prominent figure on business TV channels, is under scrutiny for his involvement in a ‘pump and dump’ scheme that manipulated stock prices.
Allegations and Investigation
According to the reports, the preliminary investigations suggest that Bhasin directed a private entity to purchase certain specific stocks, which he subsequently recommended on television. This practice allegedly led to increased retail investor interest and inflated stock prices before the company unloaded its holdings. SEBI’s investigation has reportedly gathered evidence from Bhasin’s digital records, which have covered multiple years.
Regulatory Compliance
Under SEBI’s regulations, individuals making public recommendations about stocks must comply with stringent guidelines. These include refraining from trading in recommended securities thirty days prior to and five days following their public appearances. Non-compliance may result in penalties under the SEBI Act, of 1992, ranging from fines to restrictions on market activities.
Response from IIFL Securities
IIFL Securities clarified that Bhasin served as a consultant on a contractual basis and was not a member of its Board of Directors. His contract, originally scheduled to conclude on June 30, 2024, was terminated prematurely due to health reasons effective from June 17, 2024. The company stated it was unaware of the specifics of SEBI’s investigation during Bhasin’s tenure.
Recent Developments
Following the investigation, Bhasin has significantly reduced his appearances on television. Instead, he has been actively engaging with followers on social media. Queries regarding his absence from TV have notably increased since mid-June, aligning with the regulatory actions taken by SEBI.
Conclusion
SEBI’s investigation into Sanjiv Bhasin highlights its ongoing efforts to uphold market integrity and safeguard investors from fraudulent activities. As the probe progresses, SEBI is expected to follow its procedural norms, including issuing notices and potentially imposing penalties based on the findings and responses from all involved parties.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.