Sanjiv Bhasin is reportedly under investigation by SEBI for his alleged involvement in market manipulation. Initial investigations revealed that Bhasin directed a private company to purchase certain stocks, which he then recommended on television. After generating sufficient retail interest and causing the stock price to rise, the company would sell off the stock.
As per a report by moneycontrol, the market regulator is also investigating a potential link between Bhasin and this entity. These activities are commonly known in the market as a 'pump and dump' scheme.
"Mr Sanjiv Bhasin was associated with IIFL Securities as a Consultant on contractual basis. His term was to end on June 30, 2024. However, due to health reasons, Mr Bhasin's contract has been discontinued prematurely with effect from June 17, 2024. Mr. Bhasin informed us about SEBI's enquiry but the details of the same was not disclosed to us. Hence, we will not able to comment," IIFL Securities said in a statement.
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The brokerage house also added that Bhasin was not a member of IIFL's Board of Directors or any other entity associated with the same.
"Please note that he was not a member of the Board of Directors of IIFL Securities Limited or any other group company or affiliates," the statement further read.
According to sources cited in the report, the regulator has examined Sanjiv Bhasin's digital devices as part of the investigation and collected evidence.
It is worth noting that Sanjiv Bhasin has noticeably reduced his TV appearances, instead focusing on retweeting comments from his followers who praise his stock recommendations. Since June 15, there has been a rise in comments asking about his absence from television.
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