Sanjiv Bhasin, previously associated with IIFL Securities as a consultant, is under investigation by the market regulator for his alleged involvement in market manipulation, according to news report by Moneycontrol.
Authorities have reportedly examined Bhasin’s digital devices as part of the investigation, gathering evidence related to the allegations. Requests for comment from Bhasin and the Securities and Exchange Board of India (SEBI) are pending responses.
Bhasin’s association with IIFL Securities was on a contractual basis, and his contract was terminated prematurely due to health reasons on June 17, 2024. IIFL Securities clarified that Bhasin was not a member of its Board of Directors or affiliated companies.
Bhasin, known for his appearances on business TV channels discussing stock ideas and market sentiment, faces allegations that he directed a private entity to purchase specific stocks, subsequently recommending these stocks on television. Following increased retail interest and stock price appreciation, the entity would allegedly sell off the stocks—a practice commonly referred to as a ‘pump and dump’ scheme.
Legal experts emphasize that individuals providing public recommendations on securities must comply with regulations, including disclosures of financial interests and trading restrictions around their public appearances.
Sebi’s investigation typically involves initial evidence gathering, followed by potential issuance of showcause notices and subsequent penalties or restrictions based on findings.
Recent observations suggest Bhasin has reduced his TV appearances and has been interacting more through social media, where queries about his absence from television have increased since mid-June. Sebi’s actions reportedly coincide with this period as part of its intensified scrutiny on market manipulation via media platforms.
Disclaimer: Legal Parivar could not independently verify the report.
