NSEMarket Regulator Securities and Exchange Board of India (SEBI) has initiated an investigation into Sanjiv Bhasin, who has been associated with IIFL Securities.
According to sources, SEBI officials have examined Bhasin's digital devices as part of the investigation and gathered evidence.As per sources, SEBI is investigating allegations of market manipulation and front-running against Bhasin.Front-running is an unethical practice where a broker or trader takes advantage of advance knowledge of pending orders from their clients to engage in advantageous trades.
"However, due to health reasons, Mr Bhasin's contract has been discontinued prematurely with effect from June 17, 2024.
"IIFL declined to comment on SEBI's investigation, saying, "Sanjiv Bhasin informed us about SEBI's enquiry", but did not disclose further details.Bhasin is a familiar face on business TV channels, where he discusses stock ideas and market sentiment.
Comments asking why he hasn't been on TV have increased in frequency since June 15.
NSE
Market Regulator Securities and Exchange Board of India (SEBI) has initiated an investigation into Sanjiv Bhasin, who has been associated with IIFL Securities. According to sources, SEBI officials have examined Bhasin's digital devices as part of the investigation and gathered evidence.As per sources, SEBI is investigating allegations of market manipulation and front-running against Bhasin.Front-running is an unethical practice where a broker or trader takes advantage of advance knowledge of pending orders from their clients to engage in advantageous trades. This allows the broker to profit or avoid losses by entering into trades before executing the client's orders.Bhasin's contract with IIFL Securities was terminated after he informed the brokerage of SEBI's investigation.Bhasin has represented IIFL Securities on several media platforms and is a regular market guest on a financial news channel.In its response to CNBC-TV18, IIFL Securities said Bhasin was associated with it as a consultant on a 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 declined to comment on SEBI's investigation, saying, "Sanjiv Bhasin informed us about SEBI's enquiry", but did not disclose further details.Bhasin is a familiar face on business TV channels, where he discusses stock ideas and market sentiment. Initial investigations indicated that Bhasin would direct a private company to buy certain stocks, after which he would recommend these stocks on TV.The company would dump the stock after sufficient retail interest is generated and the stock price moves up. The probe is also looking into the connection between Bhasin and this entity. The actions being probed by Sebi are referred to in market parlance as a ‘pump and dump’ scheme.Aaron Solomon, Managing Partner, Solomon & Co, told Moneycontrol that any person making a public appearance, providing a recommendation, or offering an opinion concerning securities or public offers through public media must comply with the requirements laid down under the Securities and Exchange Board of India (Research Analysts) Regulations, 2014.The regulations require that any person appearing as a guest to provide any advice related to stocks shall not deal or trade in securities that he recommends or follows within thirty days before and five days after his appearance and advice. They must also disclose their name, registration status and details of financial interest in the company being discussed, if any.Solomon added that, in case of non-compliance, the expert may be penalised for fraudulent and unfair trade practices under Section 15HA of the Securities and Exchange Board of India Act, 1992, with a penalty which shall not be less than five lakh rupees, but which may extend to twenty-five crore rupee or three times the profit made from such practices, whichever is higher.Usually, in SEBI investigations, evidence from various sources, such as personal gadgets, is gathered in the initial stage. After that, depending on the regulator’s findings and submissions by the person or entity under scrutiny, Sebi issues a show-cause notice and then passes an order that may impose penalties or restrictions on the investigated entity.Recently, Bhasin seems to have reduced his TV appearances. Instead, he has been retweeting his followers' comments that thank him for his stock recommendations. Comments asking why he hasn't been on TV have increased in frequency since June 15. The sources cited said that the market regulator's actions occurred around that time.SEBI has been cracking down on guest experts who come on media platforms, particularly on TV channels, to manipulate stock prices.
