Sanjiv Bhasin to return to markets: Who is he & why was he barred by Sebi?

With finfluencer Avadhut Sathe facing scrutiny from the market regulator Sebi over alleged unregistered advisory services, attention has shifted to Sanjiv Bhasin, former IIFL Securities director, who has been permitted to return to market trading with caviats.

 

The Securities and Exchange Board of India (Sebi) has gone after unregistered finfluencers for providing stock recommendations, and has taken measures to remove social media content and misleading advertisements. 

 

In the latest episode, reports show that the founder of Avadhut Sathe Trading Academy is being investigated for illegal earnings of over ₹400 crore. 

 

As this unfolds, Bhasin, the former director at IIFL Securities, who was investigated by the Securities Appellate Tribunal (SAT) for similar allegations, was let go once he deposited ₹1 crore with Sebi.  

Who is Sanjiv Bhasin? 

Bhasin was a former director of IIFL Securities (April 1, 2017 to November 30, 2022) and later served as a consultant to the firm. While associated with IIFL as a director or consultant, Bhasin provided stock recommendations through media, including Telegram and other platforms. Bhasin even appeared as a guest expert on various TV shows to provide stock recommendations. 

Why Sebi banned Sanjiv Bhasin?

The market regulator barred him from indulging in share manipulation in a case pertaining to providing stock recommendations on multiple platforms. 

 

Sebi's investigation showed that Bhasin took positions, mostly buy orders, before appearing on media channels. This was done in the trading accounts of Gemini Portfolios, Venus Portfolios, and HB Stock Holdings Ltd. through dealers of the trading member RRB Master Securities Delhi Ltd.

 

A search and seizure operation conducted by Sebi on June 13-14, 2024, across multiple locations in NCR led to the discovery of critical evidence, including WhatsApp chats and audio recordings. These revealed the modus operandi used by Bhasin in operating the fraudulent scheme of creating contrary positions to his own recommendations in the form of BTST (Buy Today Sell Tomorrow) or intraday trades.

 

Sebi noted that Sanjiv Bhasin and others have been found to have violated provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practice) norms and research analyst rules, collectively making illegal gains amounting to ₹11.37 crore. 

Bhasin gets partial relief

The SAT, earlier this month, directed that the trading and demat accounts of Bhasin be unfrozen once he deposits ₹1 crore with the market regulator. 

 

"The appeal is disposed of with the direction to the appellant to deposit a sum of ₹1 crore in a fixed deposit with lien mark in favour of Sebi within four weeks from today and to file a reply with the SEBI within a period of four weeks and to co-operate in the proceedings," SAT said in an August 1 order.