Shares of IIFL Securities were trading in a tight range on Thursday amid reports that a former associate was under the scanner for alleged stock manipulation.
What Happened: India’s market regulator is investigating Sanjiv Bhasin, formerly associated with IIFL Securities, for alleged market manipulation, Moneycontrol reported, citing sources. Officials have reportedly examined his digital devices and gathered evidence as part of the investigation.
Bhasin, known for his appearances on business TV channels, is suspected of directing a private company to buy certain stocks and then recommending them on TV.
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Once retail interest increased and stock prices rose, the company would allegedly sell off the stocks. This “pump and dump” scheme is now under Sebi’s scrutiny, which has reportedly found digital evidence supporting these claims.
IIFL Securities clarified that Bhasin was a consultant on a contractual basis, and his term, originally set to end on June 30, 2024, was terminated early due to health reasons on June 17.
The company stated that Bhasin informed them about the Securities and Exchange Board of India’s enquiry but did not disclose further details. IIFL Securities emphasised that Bhasin was not a member of their Board of Directors.
Price Action: IIFL Securities’ share price was down 0.17% at ₹227.90 in early trade on Thursday.
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