SEBI Unfreezes Sanjiv Bhasin's Trading Accounts After Rs 1 Crore Deposit
SEBI has instructed exchanges to unfreeze Sanjiv Bhasin's trading and demat accounts after he complied with a SAT order to deposit Rs 1 crore. This action follows SEBI's earlier interim order barring Bhasin from the capital markets due to allegations of stock manipulation. SEBI's investigation, sparked by complaints in 2023, accuses Bhasin of taking positions in securities and then recommending them on media channels while serving as a director at IIFL, potentially profiting from the resulting price movements. The case continues despite this development.
*this image is generated using AI for illustrative purposes only.
In a recent development, the Securities and Exchange Board of India (SEBI) has instructed exchanges to unfreeze the trading and demat accounts of Sanjiv Bhasin, following his compliance with a Securities Appellate Tribunal (SAT) order.
SAT Order and SEBI's Action
The SAT, on August 1, directed Bhasin to deposit Rs 1 crore with SEBI. This order came in response to Bhasin's appeal against SEBI's interim order that had barred him from participating in the capital markets. Upon Bhasin's compliance with the SAT directive, SEBI has now moved to unfreeze his accounts.
Background of the Case
The regulatory action against Bhasin stems from allegations of stock manipulation. SEBI's initial interim order, issued on June 17, had called for the impounding of unlawful gains amounting to Rs 11.37 crore.
Allegations Against Bhasin
SEBI's investigation was triggered by three complaints received in September-October 2023. The regulator alleges that Bhasin, during his tenure as a director at IIFL, engaged in manipulative practices:
- Taking positions in securities through entities such as Venus Portfolios, Gemini Portfolios, and HB Stockholdings.
- Subsequently recommending these same stocks on media channels and IIFL's Telegram channel.
- Capitalizing on his significant viewership to impact stock prices.
- Selling the securities for profit after his recommendations influenced the market.
Impact of Recommendations
SEBI's findings suggest that Bhasin's stock recommendations had a considerable impact on market prices, attributed to his large viewership. This influence allegedly allowed him to profit from the subsequent price movements.
Ongoing Proceedings
While the unfreezing of accounts provides some relief to Bhasin, it's important to note that this development does not conclude the case. The regulatory proceedings regarding the allegations of stock manipulation are likely to continue.
The case underscores SEBI's ongoing efforts to maintain market integrity and address potential manipulative practices in the Indian stock market. It also highlights the significant responsibility that market commentators and financial advisors bear when making public recommendations about securities.
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