IIFL Securities Shares Continue To Decline A Day After SEBI Heat On Former Consultant

The travail of instability does not appear to be closing out for IIFL Securities a day after news emerged that the market regulator SEBI initiated a probe against the company's former consultant, Sanjiv Bhasin.

IIFL Shares Continue to Drop

The company shares saw an immediate response of the development, as the shares slumped by over 4 per cent yesterday.

The company shares continue to be on the same volatile path, largely in red. At the beginning of the day's trade on the last day of the trading week on Friday, June 28, the company shares dropped further by another per cent.

According to various reports, the Securities and Exchange Board of India is looking into acute allegations of market manipulation that were allegedly conducted by Bhasin.

IIFL Securities issued a statement stating that Bhasin was employed on a contractual basis. His term as a consultant was prematurely ended on June 17, as opposed to the original June 30. According to reports, Bhasin had a known profile, with greater visibility across the visual media paradigm.

IIFL Securities 2023 Ban

This is not IIFL Securtities's first instance of being in the eye of the storm, as in the past, particularly in 2023, when the SEBI handed the company a temporary ban for violating the code of conduct regulations for stock brokers.

This development even led to a massive slump of over 17 per cent.

Coming to the new development, the company shares have decreased by over 9.67 per cent or Rs 21.79, in value in just over the past 5 days.

About an hour into the opening of the markets on Friday, the company shares have 2.03 per cent or Rs 4.18, taking the cumulative value of each individual share to Rs 201.75 at 10:03 IST.

In the early hours of the day's trade, the marquee indices were trading in green, with the NSE Nifty gaining 0.34 per cent, meanwhile, BSE Sensex gained 0.36 per cent.