IIFL Director Sanjiv Bhasin Banned by SEBI for Front Running

In a significant move against market manipulation, the Securities and Exchange Board of India (SEBI) has banned Sanjiv Bhasin, Director of IIFL Securities, for engaging in front running activities. The market regulator alleges Bhasin used his position to profit illegally, making an estimated ₹11.37 crore.

How the Alleged Front Running Worked

Front running involves placing trades based on advance knowledge of large client orders. SEBI’s investigation suggests that Bhasin allegedly recommended stocks and subsequently profited by executing trades through his own accounts before executing the larger client orders, potentially impacting market prices.

Penalties and Implications

SEBI’s ban prevents Bhasin from participating in the securities market. The regulator is also pursuing further penalties, the details of which are yet to be publicly disclosed. This action underscores SEBI’s commitment to maintaining market integrity and protecting investors from unfair practices.