Capital markets regulator Securities and Exchange Board of India (SEBI) is investigating Sanjiv Bhasin of IIFL Securities, for his part in an alleged market manipulation, according to a report by news agency PTI. SEBI officials have examined Bhasin's digital devices as part of the investigation and gathered evidence, said the report. Bhasin regularly discusses stock trading ideas on various business news channels and digital media platforms.
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The stock trading platform told news agencies that Bhasin was not a member of its Board of Directors and that his term with the company was discontinued prematurely. The report said that initial investigations by SEBI revealed Bhasin would order a private company to buy specific stocks after which he would recommend these stocks for traders to buy on media channels.
LiveMint could not independently verify the report.
According to the report, Bhasin's digital records over the past few years have provided evidence of his involvement in the above. The probe is also looking into the connection between Bhasin and this entity. In market parlance, the actions being probed by the market regulator are referred to as a ‘pump and dump’ scheme.
The report quoted IIFL Securities in a statement, "Mr Sanjiv Bhasin was associated with IIFL Securities as a Consultant on contractual basis. His term was to end on June 30, 2024. However, due to health reasons, Mr Bhasin's contract has been discontinued prematurely with effect from June 17, 2024.''
IIFL Securities added that Bhasin had informed the company about SEBI's enquiry but the details of the same were not disclosed. Hence, the brokerage refrained from making any comments on the ongoing SEBI investigation.
“Bhasin informed us about SEBi's enquiry but the details of the same were not disclosed to us. Hence, we will not be able to comment. Please note that he was not a member of the board of directors of IIFL Securities Ltd or any other group company or affiliates,” said IIFL Securities.
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Usually, in SEBI investigations, gathering evidence from various sources such as personal gadgets happens in the initial stages, according to the report. After the gathering of evidence, SEBI issues a show-cause notice and then passes an order that may impose penalties or restrictions on the investigated entity, depending on the findings and submissions made by the person or entity under scrutiny.
