Context:
In a rare and significant regulatory action, the Securities and Exchange Board of India (SEBI) has barred Sanjiv Bhasin, Director at IIFL Securities, from participating in the securities market for engaging in fraudulent front-running practices—a first involving a high-profile research analyst.
Key Findings by SEBI
Nature of Violation
- Bhasin purchased stocks prior to recommending them publicly on television channels and IIFL’s Telegram channel.
- After recommending these stocks to the public—mainly “buy” calls—he sold them post-price surge, thereby securing illicit gains.
- Front Running
- Front running generally involves exploiting non-public information about a large impending trade to profit from the subsequent price movement.
Stocks Involved
- Prominent listed entities such as:
- L&T Technology Services
- Parag Milk Foods
- InterGlobe Aviation
- SAIL
- Godrej RCP
