“An amount of Rs 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,” a 149 page order said.
In an interim order passed by Whole Time Member Kamlesh C. Varshney, the market watchdog held that Bhasin used to first buy securities himself and then recommended the same securities to the public on news channels and IIFL’s telegram channel.
“After analysing all evidences on record, I hold that this is a fit case to exercise powers of passing interim order so as to insulate the securities market and to protect the unlawful gains from being dissipated further, which may go beyond the regulatory reach,” the order said further.
About the front-running case
Bhasin appeared as a guest on news channels. Sebi also barred Lalit Bhasin and Ashish Kapur from accessing the stock markets holding them enablers for the unlawful gains made through front-running.
Rajiv Kapoor, Jagat Singh and Praveen Gupta were found to be information misusers in the case, who the regulator said may also have benefitted from the illegal activities.
Sebi conducted an investigation for the period from January 1, 2020 to June 12, 2024 to arrive at the findings. It had received three complaints in September-October 2023, alleging that Bhasin, who was then a director at IIFL Securities, traded through a broker viz. RRB Master Securities Delhi where he used to first buy securities himself, then used to recommend the same securities to the public.
Once the prices of securities increased after his recommendations, he used to sell the securities, thereby making a profit.
“Sanjiv Bhasin manipulated the price of securities and made ill-gotten gains,” the order read.
Lalit Bhasin is the cousin of Sanjiv Bhasin and also Director/shareholder of RRB Master. Apart from Lalit, Ashish Kapur and Praveen Gupta were the authorised persons to operate trading and bank accounts of RRB Master.
Meanwhile, Rajiv Kapoor and Jagat Singh were dealers of RRB Master who placed orders in the trading accounts of Venus Portfolios, Gemini Portfolios and HB Stockholdings, as per the instructions of Sanjiv Bhasin.
Sebi has given Bhasin and other accused 21 days to file their replies. The order has come into force with immediate effect and shall be in force till further Orders.
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