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The Securities and Exchange Board of India (SEBI) is currently investigating Sanjiv Bhasin, a well-known figure in the Indian financial landscape, for his alleged role in market manipulation. Bhasin, previously associated with IIFL Securities, has gained recognition through his frequent appearances on business TV channels, where he offers insights into stock ideas and market trends.
SEBI's probe has led to the examination of Bhasin's digital devices, yielding evidence that suggests his involvement in a manipulative scheme. Initial investigations point to a pattern where Bhasin allegedly directed a private company to purchase specific stocks. Subsequently, he would promote these stocks on television, generating retail interest and inflating their prices.
Following the price surge, the private company would then dispose of its holdings, benefiting from the inflated value. This practice, commonly known as a 'pump and dump' scheme, involves artificially inflating the price of a stock through misleading information or hype, before dumping it onto unsuspecting investors who have been lured in by the false promise of quick profits.
Bhasin's recent decline in television appearances and his focus on retweeting positive feedback from followers who thank him for his recommendations, suggest that he is aware of the ongoing investigation. The increased frequency of comments questioning his absence from TV since June 15th further supports this notion.
The actions of the market regulator, occurring around the same period as Bhasin's reduced media presence, highlight SEBI's efforts to curb market manipulation practices. These efforts are aimed at protecting investors from deceptive schemes and ensuring a fair and transparent financial ecosystem.
SEBI's investigation raises important concerns about the role of financial experts and their responsibilities in providing accurate and unbiased information to investors. It underscores the need for stricter regulations and oversight to prevent manipulative practices and safeguard the integrity of the financial markets.
The Securities and Exchange Board of India (Research Analysts) Regulations, 2014, set specific requirements for individuals who appear on public platforms to provide stock recommendations. These regulations require such experts to disclose their financial interests in the companies being discussed and prohibit them from trading in the securities they recommend during a specified period before and after their appearances.
Failure to comply with these regulations can result in severe penalties, including fines of up to twenty-five crore rupees or three times the profit gained through fraudulent practices. This strong legal framework demonstrates SEBI's commitment to holding individuals accountable for their actions in the financial markets.
SEBI's ongoing investigation into Sanjiv Bhasin serves as a reminder that manipulating the market for personal gain has serious consequences. The regulator's proactive approach in scrutinizing financial experts and their activities sends a clear message that market integrity is paramount and will be rigorously defended.