The market regulator SEBI has taken a big action and banned Sanjeev Bhasin and many of his colleagues associated with IIFL Security in the equity market. After this, these people cannot make direct or indirect share shopping or selling them. SEBI has taken this strict action in the matter of cheating the stock market investors through the game of ‘pump and dump’. Let’s know what is this ‘pump & dump’ strategy and how does it work?
Who is Sanjeev Bhasin, what action did SEBI take?
First of all, in detail, who is Sanjeev Bhasin and what action has SEBI taken on him? So Sanjeev Bhasin is a well -known stock market expert and was associated with IIFL Securities. Due to their strategy, they have come under the grip of SEBI. In fact, SEBI investigation revealed that Sanjeev and his associates were incorrectly earning through the pump and dump scheme on the share and were cheating investors. The investigation of the case was launched in June 2024 by the market regulator.
According to reports, Sanjeev Bhasin had asked a private company to buy some special stock, which was opened in the name of his brother Pradeep Bhasin. After this, the trading volume was affected with the increase in its prices. In this way, an illegal benefit of Rs 11.37 crore was earned by him. Taking strict action from SEBI, this amount has been seized from the accounts of Bhasin and his colleagues, while according to the interim order, all the accused in the case have been completely stopped from purchasing and selling in the equity market. Along with this, with the ban on all mutual funds and securities redemption, SEBI has asked those who get the notice to present the full list of properties within 15 days.
‘Pump and Dump’ strategy works like this
It is important to know here that what is this pump & dump scheme? So let us know that this is a strategy to carry out fraud in the stock market. In which the puzzle is pumped by spreading false or misleading information about a share and when its price increases, it is dumped. When the stock price increases, such people get out by selling it at a higher price and common investors have to suffer losses. The special thing is that such false claims are made by such people, whose effect is strong and investors easily get into their words.
If you understand in easy language, then people who adopt this strategy first purchase a big stake in a share and then share the false claims or information related to the strong profit in it and share it to the investors. Investors are encouraged by them and start investing in that stock. When there is a sharp jump in the share price when shopping increases, then at such a time they sell their stake and go out after making a big profit. On the other hand, due to sudden selling, the stock price breaks, then the common investors who invest money in it have to bear the loss.
11 people including Bhasin in SEBI’s grip
SEBI has issued strict interim measures against 11 others along with Sanjeev Bhasin. Banks with their accounts have also been asked to not allow debit by the market regulator without permission. Lalit Bhasin and Ashish Kapoor, one of the other accused, have also been banned from the market. Apart from this, Rajiv Kapoor, Jagat Singh and Praveen Gupta were nominated as the misuse of information in this case. In this case, there were some other people who used to buy shares of selected companies on their instructions first, then Sanjeev Bhasin used to recommend those shares on TV programs, which also used to increase the price with their purchases and then they used to make benefits.
(Note- Be sure to consult your market experts before any kind of investment in the stock market.)