SEBI restrains former IIFL director Sanjiv Bhasin from markets for stock manipulation

By | June 18, 2025
Sanjiv Bhasin stock tips controversy leads to SEBI action

India’s capital market regulator, the Securities and Exchange Board of India (SEBI), has taken strict action against Sanjiv Bhasin, a former director at IIFL Securities. The watchdog accused him of manipulating stock prices for personal gain. SEBI issued an interim order barring Bhasin and 11 others from trading in the securities market.

What SEBI Discovered

SEBI investigated a long-running scheme that reportedly began in January 2020 and continued until June 2024. It found that Bhasin and his close associates bought certain stocks in advance. After purchasing them, Bhasin recommended these stocks on popular business TV channels and Telegram groups run by IIFL.

His public recommendations often caused stock prices to rise. Once the price went up, his network sold the shares and booked profits. SEBI called this a clear case of front-running and market manipulation.

The Alleged Strategy

SEBI’s probe highlighted how the scheme worked:

  • Bhasin would first identify stocks with potential price movement.
  • He and his associates purchased these shares quietly.
  • He then endorsed the same stocks on Zee Business, ET Now, or IIFL’s Telegram channel.
  • His comments triggered a wave of buying from retail investors.
  • The price of the stock surged as a result.
  • His network would then sell their holdings and walk away with significant profits.

This tactic allowed them to earn over ₹11.37 crore in illegal gains.

People and Entities Involved

The market regulator didn’t just point the finger at Bhasin. Its order named 12 individuals and entities, including:

  • Lalit Bhasin, Sanjiv’s cousin
  • Ashish Kapur, a former colleague
  • Several small investment and portfolio firms

Each of these parties, SEBI claims, either helped or directly benefited from the trades. SEBI directed them to freeze their bank and demat accounts. It also asked them to submit a full list of their financial and physical assets.

Use of Media Platforms

What makes this case unique is how public media played a central role. Sanjiv Bhasin had a large following on TV and social media. Many viewers trusted his stock picks because of his background in finance.

SEBI believes he misused this trust. His stock recommendations were not just opinions but part of a larger, calculated strategy to drive prices up. Investors who followed his advice bought stocks without knowing he had already taken positions.

This raises serious concerns about the credibility of financial advice given on public platforms. The case could lead to new rules on disclosures and transparency for media guests and influencers in the finance space.

Regulatory Actions Taken

SEBI wasted no time in acting. It imposed several immediate measures:

  • Market Ban: All 12 parties cannot buy, sell, or trade securities in any form.
  • Asset Freeze: Their accounts remain frozen to prevent any movement of funds.
  • Impoundment: SEBI impounded ₹11.37 crore of suspected illegal gains.
  • Fixed Deposit Lien: The amount must be kept in a fixed deposit with a lien in favor of SEBI.
  • Mandatory Disclosure: All accused parties must submit details of their properties, accounts, and investments.
  • Time to Respond: The accused have 21 days to reply and may request a hearing.

SEBI also warned that it may take further action, including criminal proceedings, if the accused fail to comply.

Why This Matters

The case shows how easily public platforms can be misused for personal gain. Bhasin’s reach extended to thousands of investors who watched his stock tips. Many of them may have bought stocks based on his advice, unaware of his own vested interest.

This case highlights a larger problem. Finfluencers, analysts, and so-called market experts often operate without proper oversight. When they offer stock tips, many don’t disclose if they hold those stocks. That lack of transparency can hurt ordinary investors.

SEBI’s crackdown could trigger a shift in how financial media functions in India. There may be stronger rules in the future that require disclosure of holdings, mandatory registrations, and conflict-of-interest declarations before appearing on TV or social media.

What Investors Should Learn

Retail investors must be cautious when acting on public stock advice. No matter how credible the expert seems, it’s important to:

  • Do independent research
  • Verify facts from multiple sources
  • Avoid panic buying based on TV tips
  • Understand the risks

This case shows that even trusted financial figures may not always act in investors’ best interests.

SEBI’s Message Is Clear

By acting decisively, SEBI has shown it won’t tolerate unethical practices in the stock market. This case may become a benchmark for future investigations. It also underlines the regulator’s intent to protect retail investors and maintain market integrity.

SEBI’s order is not final yet. The accused will have a chance to present their side. However, the interim findings and the severity of the actions already taken suggest that the matter is being treated very seriously.

Conclusion

SEBI’s action against Sanjiv Bhasin and his associates shines a spotlight on a growing risk in today’s market — the abuse of influence. The misuse of trust and media reach for personal financial gain can lead to serious consequences, not just for the individual but for the credibility of the entire financial ecosystem.

As the case unfolds, investors, regulators, and media platforms must reflect on how to ensure greater transparency and fairness in market communication. Trust is the backbone of the financial world, and restoring it will require both strong enforcement and smarter regulation.