Key Highlights
- SEBI bars ex‑IIFL Director Sanjiv Bhasin and 11 others from securities markets for stock-tip manipulation.
- Regulator orders impounding of approximately ₹11.37 crore in unlawful gains from coordinated front‑running activities.
The Securities and Exchange Board of India (SEBI) imposed a comprehensive interim order against television market analyst Sanjiv Bhasin and eleven associates, impounding ₹11.37 crores illegally obtained from a systematic market manipulation scheme from January 2020 to June 2024.
SEBI initiated the proceedings in response to complaints received from September to October 2023 alleging coordinated stock manipulation activities. The investigation revealed that Bhasin, who was a Director and then a Consultant at IIFL Securities Limited, engaged in a sophisticated scheme that included advance position-taking, public recommendations, and contrarian trades.
The market regulator discovered that Bhasin would open positions in specific securities through associated entities before making public recommendations on business television channels such as Zee Business, ET Now, and CNBC, and then execute opposite trades to profit from price movements caused by his media appearances.
"Prior to appearing on media channels to give stock recommendations, Noticee No. 1 took positions (majorly buy) in Venus, Gemini, and HB through RRB Master dealers Jagat Singh and Rajiv Kapoor. As a result, he would recommend specific scrips in Media Channels," the order stated.
The scheme involved multiple entities that produced substantial profits:
- Venus Portfolios Private Limited: ₹6.32 crores.
- HB Stockholdings Limited earned ₹2.42 crores.
- Gemini Portfolios Private Limited charges ₹27.7 lakh.
- Additional individual participants contributed ₹2.35 crores.
All trades were executed by RRB Master Securities Delhi Limited, with dealing instructions coordinated via phone calls and WhatsApp messages between Bhasin and authorized dealers.
"Now there is ₹1.22 crore in cash..." Please include this in my daily sheet," Bhasin stated after one trading sequence, indicating systematic record-keeping of proceeds.
Also Read: SEBI Probes IndusInd Bank's Senior Management for Serious Violations
SEBI found prima facie violations of several regulatory provisions, including:
- Sections 12A (a), (b), (c), and (e) of the SEBI Act of 1992;
- Regulations 3 and 4 of the PFUTP Regulations, 2003;
- Regulations 16(2) and 21(2) of the Research Analyst Regulations of 2014;
The violations include manipulative and deceptive practices, fraudulent trading, and inadequate disclosure requirements for research analysts who make public recommendations.
