Who Is Sanjiv Bhasin? Why Has SEBI Banned the Former IIFL Director from Stock Market Trading?

The Securities and Exchange Board of India has now banned Sanjiv Bhasin, a former director and consultant at IIFL Securities, from trading in the securities market. The regulatory crackdown was done after a detailed investigation revealing Bhasin's alleged involvement in stock price manipulation through misleading stock recommendations. Along with Bhasin, 11 others have also been restrained from trading in the capital market.

Why Has SEBI Banned Sanjiv Bhasin?

Sanjiv Bhasin exploited his high-profile position as a market expert on leading financial TV channels and social media platforms such as Telegram, according to SEBI's 149-page interim order issued on June 17. While appearing as a guest expert, Bhasin made bullish stock recommendations, even as his related entities had already taken buy positions in advance.

As per reports, the regulator found that Bhasin used trading accounts linked to Gemini Portfolios, Venus Portfolios, and HB Stock Holdings Ltd to enter positions before promoting stocks publicly. Once his recommendations influenced retail investors and led to a price surge, those same accounts would offload the stocks for profits, a classic case of front-running and manipulation.

Key Findings of SEBI's Investigation

Before giving bullish advice, he'd secretly buy stocks using accounts linked to entities like Gemini Portfolios, Venus Portfolios, and HB Stock Holdings Ltd. After public mention, the stock prices would rise, allowing him to sell at a profit. bSEBI found this behaviour occurred between Jan 1, 2020, and June 12, 2024.

The order also named Lalit Bhasin, Sanjiv's cousin, as a co-conspirator who facilitated trades through his accounts. Additionally, Ashish Kapur, Managing Director of RRB Master Securities Ltd, was found to have enabled the network by providing execution infrastructure. Several other dealers at the broking firm executed trades based on Bhasin's instructions.

SEBI's Action

SEBI's order includes a temporary ban on all 12 individuals and entities from accessing or dealing in the securities market. Freezing of trading and demat accounts, as well as associated bank accounts, until the entire sum of Rs.11.37 crore is recovered. SEBI has also given an opportunity for the parties to respond or seek a personal hearing within 21 days of the order.