What Really Happened? SEBI’s Bold Step Against a Familiar Market Face

India’s market regulator, SEBI, has banned Sanjiv Bhasin, a former executive at IIFL Securities, from trading or working in the securities markets. This decision comes after an investigation into claims that Bhasin was involved in manipulating stock prices and misusing client funds.

 

Here’s what happened:

 

SEBI looked into Bhasin’s trading activity and found evidence suggesting he was using his position and media appearances to influence stock prices. The regulator says he would recommend certain stocks on TV after buying them through a private entity, then sell them once the prices went up, thanks to the extra attention. This kind of “pump and dump” activity is a serious violation of market rules.

 

IIFL Securities ended its contract with Bhasin earlier than planned, saying he wasn’t a board member and that they weren’t told about the details of SEBI’s investigation. SEBI also placed a two-year ban on IIFL Securities from onboarding new clients, following repeated issues with how the company handled client funds.

 

Legal experts point out that these kinds of violations can lead to heavy fines and long-term bans. IIFL says the problems SEBI found happened before 2017 and that they’ve made changes since then. The company plans to appeal SEBI’s order.

 

This case is a reminder that SEBI is serious about keeping the markets fair for everyone.

 

Sources: Moneycontrol, Times of India, Business Today