Shares of IIFL Securities today fell 7 per cent to a low of Rs 219.45 because of the company’s association with Sanjiv Bhasin, who is facing a Securities and Exchange Board of India (SEBI) inquiry for alleged stock manipulation.
According to reports, Sebi has been probing allegations of market manipulation and front-running against Bhasin by examining his digital devices as part of the gathered evidence.
Front-running is an unethical practice where a broker or trader takes advantage of pending orders from their clients to engage in advantageous trades. This allows the broker to profit or avoid losses by entering into trades before executing the client’s orders.
Bhasin’s contract with IIFL Securities was terminated after he informed the brokerage of SEBI’s investigation. His term was to end on June 30, 2024. However, due to health reasons, his contract was discontinued prematurely with effect from June 17, 2024.
Bhasin has represented IIFL Securities on several media platforms and is a regular market guest on a financial news channel.
“Bhasin informed us about Sebi’s enquiry but the details of the same were not disclosed to us. Hence, we will not be able to comment. Please note that he was not a member of the board of directors of IIFL Securities Ltd or any other group company or affiliates,” IIFL Securities said in a statement.
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