The Securities and Exchange Board of India (SEBI) also directed impounding of 11.37 Crore from the 12 Notices-Reporanting Alleged Unlawful Gains from the Scheme-Ccording to the regulator’s ex-parte interim ordered on tuesday.
Bhasin was associateed with Iifl as a director Between April 2017 and November 2022 and Later as a Consultant Until Until June 2024. IIFL’s Telegram Channel and Trading Platforms.
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Sebi alleged that Bhasin Placed Buy Orders Through Trading Accounts of Related Entities – Including Venus Portfolios, Gemini Portfolios, And HB Stockholdings – Shortly Before recommending the Same Stocks on Business Channels Such as CNBC Awaaz, Zee Business, ET Now, and IIFL’s Telegram Channel.
“Once prisles of securities increase after his recommendations, sanjiv bhasin used to sell the seconds, thereby making a profit,” said seid sede sebi whole-time memor kamlesh Varshney in the 149-Opener. “Accordingly, he manipulated the price of security and made Ill-Gotten Gains.”
The findings are based on a probe covering January 2020 to June 2024.
According to sebi, the trades were routed through RRB Master Securities, A Brokerage FIRM Managed by Bhasin’s Cousin’s Cousin Lalit Bhasin and His Brother-in-LAW ashish kapur.
The Order States that Bhasin regularly coordinated with rrb deals before making his recommendations.
In one instance, on 11 January 2022, he recommended shares of l & t technology services live on zee business. Sebi observed that “He had alredy accumulated 3,800 shares via futures contracts earlier in the day at 5,641.8 per share, “and squared off the position immediati after the broadcast at 5,677.79, Booking a Profit of 1.36 lakh.
Modus operandi
Sebi’s Investigation Included Phone Call Transports Showing Bhasin Giving Precise Instructions to Dealers on Price and Quantity, often minutes before his public appearances.
“He used to recommend majorly ‘boy’ recommendations in certain scrips on tv channels, which included these scrips in which he had already taken huege buy potions. Buy recommendations giving to the viewers en masse, he would give instructions to carry out opposite trades (SELL), ”The Order Stated.
On 7 February 2024, Bhasin Issued a “Special Stock Pick” for Parag Milk Foods at 210–220 with a 31-day target of 300. Sebi found he had alredy accus 51,500 shares through hb stockholdings and sold them on the same day at 235.45, realising a profit of 8.4 Lakh.
The regulator cited whatsapp messages in which bhasin sought trade confirmations and directed that profits be recorded.
Sebi also highlighted that while Iifl Securities is a Registered Research Analyst and Investment Adviser, Bhasin was not individally registered in eather capacity.
Pending Final Directions, Sebi Has Restrained All 12 Notices from Buying, Selling, Or Dealing in Securities, Eather directly or indirectly. They have been given 21 days to respond and request a personal hearing.
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“Investors would have invested their hard-earned money on his recommendation … only to be decided by such manipulative advice wherein the advisor himsel is Squering of all his postions to make hugs at the coste of their investments, “The Order said.
Iifl Securities, in a statement, said bhasin was associated with the firm as a contracual consultant. “His Term was to End on June 30, 2024. Live to health reasons, bhasin’s contrast has been discontinued prematurely with effect from june 17, 2024,” APOKEKESON SAID, “APOKEKESON SAIDAS Not a Member of the Board of Directors of IIFL Securities Limited or Any Other Group Company or Affiliates. “
The firm said it was not aware of the full details of the sebi order and was unable to comment.
The order can be appeared before the security Legal experts suggested that Bhasin’s Legal Team May Challenge sebi’s findings by disputing the causal link between his recommendations and the trades, or by denying contracts.
“They May Argue His Television appearances were General Market Commentary Rather Than Formal Advice under SEBI’s Research Analyst Regulations. Activity “, Said Nirali Mehta, Partner at MindSpright Legal.
However, Given the Volume of Evidence Cited by Sebi, Such Arguments – SIMILARE TO THESE REJECTED In the Hemant Ghai Case – MAYE BE DIFICULT TO SUSTAIN, Mehta Said.
Broader scrutiny
Lawyers specialising in securities regulation emphasized that the case signalled a broader shift in enforcement priorities. “The Sebi Interim Order in the Sanjiv Bhasin Matter Gives A Clear Message: Media Visibility, When Misuned, Can Constitute Market Abuse,” She said. “Sebi is now signalling that public-facing experts will be help to the same standard as insurances and registered entities.”
Mehta noted that under the research analyst regulations, “even recommendations on whatsapp and telegram are treated as public appearances subject to registration, disclosures, and trading resisting.”
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Sheid Experts May Shift Toward Broader Analysis, Educational Content, or More Prominent Disclaimers. “While this curbs manipulative advice, it could also narrow the range and speed of commentary. Still, The real focus is not on Silencing opinion but on penalising thece who Misese For will be found.”
While no action has been taken against the television channels that featured bhasin, mehta said, “The regulatory direction Suggests Rising Expectations Around Platform Accountability”.
She added that media outlets may be required to ensure that featured experts explicitly disclose any conflicts of interests of interest, with improved superstition and recording healthy eSential.
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