Market Regulator SEBI has stopped Sanjeev Bhasin and many of his colleagues from IIFL security from entering the equity market. They have been barred from buying, selling or transaction in direct or indirect. SEBI has banned these people due to market fraud.
SEBI said in an investigation that these people were incorrectly earning money under the pump and dump scheme on the share. The investigation of SEBI, which started in June 2024, has revealed that Bhasin had directed a private company to buy some special stock, which affected prices and trading volumes.
SEBI alleged that this rigging made an illegal benefit of Rs 11.37 crore. This entire amount is to be confiscated jointly and from different people. According to SEBI’s instructions, the accused will have to deposit the entire amount in the fixed accounts with Scheduled Commercial Banks and this amount will be freeze till the next order of SEBI.
What in SEBI’s interim order?
According to the order, the accused have been completely stopped from participating in the equity market. RRB Master Securities Delhi Limited has been exclusively barred from making transactions in securities through its proprietary account.
In an interim order passed by full -time member Kamlesh C. Varshney, the market regulator said that Bhasin himself used to buy equity himself and then recommended the same equity to the public on the news channels and IIFL’s Telegram Channel. The order further states that after analysis of all the proofs on the record, I believe that this interim order is suitable for using the powers of passing the order, so that the equity market can be protected and the illegal profit can be saved from being overwhelmed, which can be out of regulatory access.
SEBI has issued strict interim measures against Sanjeev Bhasin and 11 others. Banks with their account should not allow debit without the permission of SEBI. Fund transfer and credit to FD without order of SEBI is allowed. Demat accounts are also freeze for debit, but credit is allowed.
The full list will have to be given within 15 days
All mutual funds and securities redemption are banned and the sale of movable or immovable properties is banned until SEBI approval is received. Those receiving notice will have to give a complete list of properties within 15 days. Once the amount of Rs 11.37 crore has been deposited once, these restrictions can be lifted. The existing derivative position can be discontinued or allowed to end within 3 months. Transactions done before the date of order can be disposed of generally.
What did SEBI get during the investigation?
Bhasin, who regularly appeared as a guest on business news channels, was found involved in front-hanging activities. SEBI also banned Lalit Bhasin and Ashish Kapoor. Apart from this, Rajiv Kapoor, Jagat Singh and Praveen Gupta were nominated as those who misused information in the case. SEBI said that these persons may also have made profit from the illegal trade done under the scheme.
(Note- Be sure to consult your market expert before investing in any share.)