IIFL Securities shares tumble 7% as Sanjiv Bhasin faces SEBI inquiry
IIFL Securities today fell 7% to a low of Rs 219.45 on account of the company’s association with Sanjiv Bhasin, who is facing Securities and Exchange Board of India (SEBI) inquiry for alleged stock manipulation.
Sanjiv Bhasin is a known face on various business news channels and digital media platforms, where he discusses trading ideas pertaining to stocks and was associated with IIFL Securities as a Consultant on a contractual basis.
“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. Please note that he was not a member of the Board of Directors of IIFL Securities Limited or any other group company or affiliates,” added the company in its statement.
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Bhasin’s tenure with the company was supposed to end on June 30, 2024. However, due to health reasons, his contract has been discontinued prematurely with effect from June 17, 2024, according to a statement issued by IIFL Securities.
Initial investigations indicated that Bhasin used to direct a private company to buy certain stocks after which he would recommend these stocks on TV. After sufficient retail interest is generated and the stock price moves up, the company would dump the stock.
The probe is also looking into the connection between Bhasin and this entity. The actions being probed by Sebi are referred to in the market as a ‘pump and dump’ scheme.
Shares of IIFL Securities have
