The Securities and Exchange Board of India barred market expert Sanjiv Bhasin and several others from accessing the capital markets in connection with a front-running case on Tuesday. The regulatory body has also ordered the impounding of Rs 11.37 crore — gained unlawfully through violations. Bhasin has been accused of buying shares in various companies and promoting them through news media appearances and via the IIFL Telegram channel. He allegedly sold his holdings for profit once stock prices rose on the basis of his recommendations.
An excerpt from the interim order uploaded to the SEBI website barred several individuals including Sanjiv Bhasin, his cousin Lalit Bhasin and the latter’s brother-in-law Ashish Kapur from “buying, selling or otherwise dealing in securities”. The notice also named other relatives, dealers, and related companies and prohibited them from transacting in securities.
“An amount of ₹11,37,19,170 being the total amount of unlawful gains earned from the alleged violations, shall be impounded, jointly and severally in the manner as provided in Table 100 and Noticees are directed to open fixed deposit account(s) in a Scheduled Commercial Bank to credit/deposit jointly and severally the aforesaid amount of unlawful gains with a lien marked in favour of SEBI and the amount kept therein shall not be released without permission from SEBI,” the notice added.
SEBI said that it had investigated Bhasin’s stock recommendations and trading activity from January 2020 to mid-June 2024. The former IIFL Securities executive had left his consultant role with the company prematurely due to health issues around the same time. The SEBI investigation had begun shortly after his exit — with initial investigations suggesting that Bhasin would direct a private company to buy certain stocks before he recommended them on TV. The company would eventually dump this stock after sufficient retail interest had been generated and the stock price increased.
Meanwhile IIFL Securities said Bhasin had informed the company about SEBI’s probe but did not disclose details of the same.
“He was not a member of the board of directors of IIFL Securities or any other group company or its affiliates,” the company said in a statement on Tuesday.