Sebi prohibits Sanjiv Bhasin from engaging in stock manipulation

Sebi has taken action against Sanjiv Bhasin, a former director at IIFL Securities, and 11 others, barring them from the securities markets due to their involvement in share manipulation related to stock recommendations made on various media channels and social media platforms.

They have been directed to disgorge ill-gotten gains totaling Rs 11.37 crore. Sebi’s thorough investigation found that Bhasin, a popular media guest expert with a substantial social media following, used his influence to provide stock recommendations through media outlets, Telegram, and IIFL platforms while associated with IIFL in different capacities.

Prior to appearing on these media channels, Bhasin would take buy positions in the trading accounts of specific entities through dealers of the trading member RRB Master Securities Delhi Ltd. His recommendations, due to the large viewership of the channels he appeared on, significantly impacted the price and volume of the recommended stocks.

Bhasin would then profit from the surge in prices by executing sell orders in the same accounts, contradicting his public buy recommendations. He had been associated with IIFL Securities since 2015, serving as a Director from April 1, 2017, to November 30, 2022, and as a Consultant from December 1, 2022, to June 17, 2024.

A search conducted by Sebi across multiple locations revealed critical evidence, including WhatsApp chats and audio recordings, highlighting the fraudulent practices employed by Bhasin. It was discovered that Lalit Bhasin, Sanjiv Bhasin’s cousin, and Ashish Kapur, Managing Director of RRB Master Securities Ltd, assisted in executing the fraudulent scheme.

Other connected entities misused confidential trade order information obtained from Sanjiv Bhasin to mimic his trading strategy and make unlawful gains. Sebi found that they violated PFUTP norms and research analyst rules, cumulatively making illegal gains of Rs 11.37 crore.

As a result, Sebi has issued interim orders prohibiting them from accessing the securities market and engaging in any form of securities transactions, as well as requiring them to disgorge the illicit gains.