Business Desk – The Securities and Exchange Board of India (Sebi) has barred Sanjiv Bhasin, former director at IIFL Securities, along with 11 others, from trading in the stock market. The order comes after Sebi found that Bhasin was involved in fraudulent trading practices by buying shares before recommending them on TV and social media, then selling them at a profit once prices went up.
Sebi has also ordered the impounding of ₹11.37 crore, the alleged profit earned through this scheme, according to an interim order issued on Tuesday.
What Sebi Found
- Bhasin worked with IIFL as a director (2017–2022) and later as a consultant until June 2024.
- During this time, he shared stock tips on TV channels like CNBC Awaaz, Zee Business, ET Now, and also via IIFL’s Telegram channel.
- Sebi alleged that he bought stocks through related entities—like Venus Portfolios, Gemini Portfolios, and HB Stockholdings—just before recommending them publicly.
- Once the stock prices rose due to public interest, he sold the shares and booked profits.
Sebi’s investigation covered the period from January 2020 to June 2024.
How It Was Done
- Trades were executed through RRB Master Securities, run by his cousin and brother-in-law.
- Call recordings and WhatsApp messages showed that Bhasin gave exact instructions about trades just before his TV appearances.
- In one case, on January 11, 2022, he recommended L&T Technology Services live on Zee Business after already buying 3,800 shares earlier that day. He sold them soon after and made ₹1.36 lakh in profit.
- On February 7, 2024, he recommended Parag Milk Foods at ₹210–220 with a target of ₹300. But Sebi found he had already bought 51,500 shares and sold them the same day at ₹235.45, making ₹8.4 lakh.
Sebi noted that while IIFL Securities is a registered research analyst and investment adviser, Bhasin was not personally registered under either category.
Sebi’s Action
- All 12 individuals have been restrained from trading in any securities until further notice.
- They have been given 21 days to respond and request a personal hearing.
Sebi said that investors were misled by the recommendations and Bhasin exited his positions at a profit, leaving the public with the risk.
IIFL’s Response
IIFL clarified that Bhasin was only a contractual consultant, not a board member. His contract, which was supposed to end on June 30, was ended early on June 17 due to health issues. The company said it was not aware of the full Sebi order.
