Who is Sanjiv Bhasin and how the alleged front-running scandal unfolded: Explained

Sanjiv Bhasin, now at the centre of a regulatory storm over alleged stock manipulation, has been barred from accessing the capital markets. In an interim order issued by Securities and Exchange Board of India (Sebi) on Tuesday, the market regulator directed the impounding of unlawful gains amounting to Rs 11.37 crore. Here’s a look at who he is and how he allegedly orchestrated the market manipulation.

About Sanjiv Bhasin

Bhasin is a former IIFL Securities Director and was employed by the company in various capacities since 2015. He was the director of IIFL from April 1, 2017 to November 30, 2022 while working as a consultant from December 1, 2022 to June 17, 2024. He used to give trading/investment views on stocks, which used to be circulated/broadcasted to all clients of IIFL.

As a guest expert he used to appear on various TV shows.

Modus Operandi and how he pulled it off:

Sanjiv Bhasin, in the capacity of director IIFL, used to appear in various media channels as a guest expert and provide stock recommendations. Sebi noted that before appearing on media channels for giving stock recommendations, he took positions (majorly buy) in entities Venus Portfolios Private Limited, Gemini Portfolios Private Limited and HB Stockholdings Limited, which the regular identified as profit makers in the alleged fraudulent scheme devised by him.

Bhasin traded through a broker named RRB Master Securities Delhi Limited where he first bought securities himself and then recommended the same securities to the public on news channels or IIFL Telegram Channel.

The trades were made through Jagat Singh and Rajiv Kapoor who were dealers of RRB Master.

Sebi noted that the stock recommendation in media channels included those scrips in which he had already taken position (majorly buy). Those recommendations used to create a huge impact on the price/volume of the stock, owing to his large viewership.Once the prices of securities increased after his recommendations, Bhasin used to sell the securities, making a profit.”Accordingly, Sanjiv Bhasin manipulated the price of securities and made ill-gotten gains,” the order read.

This is an interim order passed by Sebi’s Whole Time Member Kamlesh C. Varshney.

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

Read more: Front-running case: Sebi bans Sanjiv Bhasin from markets, orders impounding of Rs 11.37 crore

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