Shares of IIFL Securities dropped up to 2 percent to Rs 222 apiece on June 27 following reports that market regulator SEBI is investigating market expert Sanjiv Bhasin for his alleged involvement in stock market manipulation.
Year-to-date, the stock of this online trading platform has surged over 55 percent, outperforming the benchmark Nifty 50 index, which rose by 9 percent during the same period.
According to reports, SEBI is conducting a probe into allegations of market manipulation and front-running against Bhasin. The investigation includes examining his digital devices as part of the evidence gathering process.
Front-running is considered unethical, where a broker or trader exploits pending orders from clients to engage in advantageous trades ahead of executing their orders, thereby profiting or avoiding losses.
Bhasin’s association with IIFL Securities was terminated after he informed the brokerage about SEBI’s investigation. His contract, originally scheduled to end on June 30, 2024, was prematurely discontinued effective June 17, 2024, citing health reasons.
Bhasin has been a frequent representative of IIFL Securities in various media platforms and is a regular guest commentator on financial news channels.
In response to the situation, IIFL Securities issued a statement acknowledging Bhasin’s disclosure of SEBI’s inquiry but clarified that details were not shared with them, preventing further comment. They also noted that Bhasin was not a member of the board of directors of IIFL Securities Ltd or any affiliated company.
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