SEBI Cracks Down: Sanjiv Bhasin, 11 Others Banned; INR 11.4 Crore Impounded

Market commentator Sanjiv Bhasin and eleven other individuals and firms have been banned by the Securities and Exchange Board (SEBI), which oversees capital markets, for engaging in front-running and manipulating the market.

Additionally, the regulator has ordered that these parties forfeit more than INR 11.4 crore in illegal earnings that were purportedly obtained from these crimes.

These persons have participated in market manipulation through stock recommendations made on television channels and various social media platforms, according to SEBI's 149-page interim ex-parte order issued on 17 June.

Bhasin, his cousin Lalit Bhasin, Lalit's brother-in-law Ashish Kapur, and other family members, dealers, and associated businesses, including Bhasin's RRB Master Securities, Delhi, are among the 12 noticees who have been prohibited from using the securities market.

Additionally, they are not allowed to purchase, sell, or deal in securities in any way, either directly or indirectly. Additionally, SEBI stated in the ruling that their bank and demat accounts had been frozen as a result of the purportedly illegal gains.

What SEBI’s Order States?

In the 149-page order passed by whole-time member Kamlesh C Varshney, SEBI stated that the total amount of unlawful gains earned from the alleged violations, which is INR 11,37,19,170, will be impounded jointly and severally.

The noticees are directed to open fixed deposit accounts in a scheduled commercial bank to credit/deposit the aforementioned amount of unlawful gains jointly and severally with a lien marked in favour of SEBI.

The amount kept in the accounts will not be released without SEBI's permission. Bhasin, noticee 1, has been told by Sebi to save the records of his several social media accounts until further instructions are given.

Additionally, it stated that the noticees must not sell or alienate any of their assets or properties until the amount of their illegal earnings has been credited to fixed deposit accounts, unless SEBI has granted them prior authorisation.

Accused Ordered to Provide Details of Movable and Immovable Assets

Additionally, the accused have been ordered to submit a comprehensive list of all of their assets, both immovable and movable. They can ask for a personal hearing and have 21 days from the date of order receipt to submit responses to SEBI. Bhasin, a director at IIFL Securities, reportedly traded through the broker RRB Master Securities, Delhi, according to SEBI's probe.

He would first purchase assets for himself before recommending them to the general public via the IIFL Telegram channel and/or news outlets like Zed Business and ET Now. Bhasin would sell these securities and turn a profit after their prices increased as a result of his advice. SEBI came to the conclusion that he made "ill-gotten gains" by manipulating security prices.

In contrast to his own suggestions made on media outlets throughout the investigation period, the SEBI probe discovered that he traded through RRB Master Securities in the accounts of its clients Venus Portfolios, Gemini Portfolios, and HB Stock Holdings.

In the accounts of Venus, Gemini, and HB, Bhasin would square off his positions (mostly sell), frequently in a matter of minutes, through dealers of RRB Master, even though he was mostly giving "buy" recommendations to viewers/followers on media channels and other platforms.

According to the evidence, he would stay in constant communication with dealers and instruct them to follow buy/sell orders right away, as stated in the order.