SEBI bars ex-IIFL Director Sanjiv Bhasin from securities markets over stock tip manipulation

The Securities and Exchange Board of India (SEBI) on Tuesday passed a comprehensive interim order against television market analyst Sanjiv Bhasin and eleven associates, impounding ₹11.37 crores garnered unlawfully from a systematic market manipulation scheme from January 2020 to June 2024..SEBI initiated the proceedings following complaints received in September-October 2023 alleging coordinated stock manipulation activities. The investigation revealed that Bhasin, who served as Director and subsequently Consultant at IIFL Securities Limited, operated a sophisticated scheme involving advance position-taking followed by public recommendations and contrary trades.The market regulator found that Bhasin would establish positions in specific securities through associated entities prior to making public recommendations on business television channels including Zee Business, ET Now and CNBC, subsequently executing opposite trades to capitalize on price movements generated by his media appearances."The Noticee No. 1, before appearing on Media Channels for giving stock recommendations, took positions (majorly buy) in Venus, Gemini and HB through Jagat Singh and Rajiv Kapoor, dealers of RRB Master. Subsequently, he would recommend certain scrips in Media Channels," the order stated..The scheme involved multiple entities generating substantial profits:Venus Portfolios Private Limited: ₹6.32 crores;HB Stockholdings Limited: ₹2.42 crores;Gemini Portfolios Private Limited: ₹27.7 lakh;Additional individual participants: ₹2.35 crores combined.All trades were executed through RRB Master Securities Delhi Limited, with dealing instructions coordinated through phone communications and WhatsApp messages between Bhasin and authorized dealers..SEBI's investigation documented extensive evidence including call data records, WhatsApp communications, and trading logs. In one documented instance involving L&T Technology Services on January 11, 2022, telephonic transcripts revealed precise trading instructions from Bhasin to dealer Rajiv Kapoor, followed by television recommendations and subsequent position liquidation.Electronic evidence recovered during search and seizure operations revealed systematic profit tracking and distribution arrangements. WhatsApp communications between Bhasin and associate and cousin crother Lalit Bhasin documented trade confirmations and financial settlements."Now ₹1.22 cr is cash... Kindly get this in my daily sheet," Bhasin communicated following one trading sequence, indicating systematic record-keeping of proceeds..SEBI determined prima facie violations of multiple regulatory provisions including:Section 12A clauses (a), (b), (c), and (e) of the SEBI Act, 1992;Regulations 3 and 4 of the PFUTP Regulations, 2003;Regulations 16(2) and 21(2) of the Research Analyst Regulations, 2014;The violations encompass manipulative and deceptive practices, fraudulent trading and improper disclosure requirements for research analysts making public recommendations..Financial Restrictions: SEBI directed impounding of ₹11.37 crores through fixed deposit accounts with regulatory liens. All bank accounts of the named parties have been subject to debit restrictions except for compliance with the order requirements.Market Access Limitations: Individual defendants have been prohibited from accessing securities markets and conducting any trading activities. RRB Master Securities is restricted from proprietary trading while maintaining client operations. All demat accounts have been ordered to be frozen to prevent securities transfers.Asset Preservation: Comprehensive asset disclosure requirements have been imposed, with prohibition on disposal or alienation of properties without prior regulatory approval. Complete asset inventories must be submitted within 15 days..The interim order simultaneously serves as a show cause notice under multiple sections of the SEBI Act. The named parties have 21 days to submit responses and may request personal hearings before potential final adjudication.Proposed final actions include disgorgement of unlawful gains with interest, permanent market access restrictions, intermediary association prohibitions and monetary penalties under applicable provisions..[Read Order]