Amid reports of Sebi probing market expert Sanjiv Bhasin for alleged stock manipulation, IIFL Securities on Wednesday clarified that Bhasin was associated with the domestic brokerage as a 'consultant' on a contractual basis. The brokerage said Bhasin's term was to end on June 30, but his contract got discontinued prematurely with effect from June 17 due to health reasons.
"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," IIFL Securities in a statement said.
Earlier, a Moneycontrol report citing sources suggested that Sebi officials have examined Bhasin's digital devices as part of the investigation and gathered evidence.
As per the Moneycontrol report, initial investigations suggested that Bhasin would direct a private company to buy certain stocks, following which he would recommend those stocks on TV appearances. Business Today could not independently verify the report. After sufficient retail interest is generated and the stock price moves up, the company would dump the stock, Moneycontrol suggested. The probe is also looking into the connection between Bhasin and this entity, the report said adding that actions being probed by Sebi are referred to in market parlance as a ‘pump and dump’ scheme.