SEBI Bans Media Expert Sanjiv Bhasin for Stock Fraud

Former IIFL Director and Others Barred from Securities Market

SEBI has taken a firm stand against stock fraud. They recently barred Sanjiv Bhasin, a former director at IIFL Securities, and 11 others from the securities market. This action follows an investigation into stock recommendation fraud.

Key Points of the SEBI Order

• Sanjiv Bhasin and 11 others are banned from the securities market.
• They must return illegal profits of Rs 11.37 crore.
• Bhasin used his media influence to manipulate stock prices.

How the Fraud Worked

Sanjiv Bhasin was a well-known media expert. He had a large following on social media. While working at IIFL, he gave stock tips on TV, Telegram, and IIFL platforms.

Before his media appearances, Bhasin would buy stocks through certain accounts. His recommendations on popular channels would then drive up the stock prices. After the prices rose, he would sell the stocks for a profit.

Bhasin’s Employment History

Bhasin worked at IIFL Securities in different roles since 2015. He was a Director from April 2017 to November 2022. After that, he worked as a Consultant from December 2022 to June 2024.

SEBI’s Investigation

SEBI conducted searches on June 13-14, 2024. They found crucial evidence like WhatsApp chats and audio recordings. These showed how Bhasin carried out his fraudulent scheme.

Lalit Bhasin, Sanjiv’s cousin, helped him place fraudulent trades. Ashish Kapur, MD of RRB Master Securities, provided the setup for these trades. Other connected people also misused trade information from Bhasin to make illegal profits.

SEBI’s Findings and Actions

SEBI found that Sanjiv Bhasin and others broke trading rules. They made illegal profits of Rs 11.37 crore. As a result, SEBI has:

• Banned them from the securities market.
• Stopped them from buying or selling securities.
• Ordered them to return the illegal profits.

This action by SEBI sends a clear message. It shows their commitment to fair and transparent markets. It also warns others against similar fraudulent activities.