In a significant development that has stirred the Indian financial markets, the Securities and Exchange Board of India (SEBI) has issued an interim order restraining Sanjiv Bhasin, former
In a significant development that has stirred the Indian financial markets, the Securities and Exchange Board of India (SEBI) has issued an interim order restraining Sanjiv Bhasin, former director of IIFL Securities Ltd, along with 10 other entities, from participating in the securities market. The order accuses them of manipulating stock prices by giving misleading recommendations through television channels and social media. SEBI has also directed the impounding of ₹11.37 crore earned through these unlawful activities.
On June 18, 2024, SEBI issued an interim order based on an extensive investigation into alleged stock manipulation activities. According to the regulator, Sanjiv Bhasin used his influence as a public figure and stock market expert to manipulate share prices for personal gain. The modus operandi involved purchasing select stocks and then recommending the same on popular business channels like Zee Business, ET Now, and the IIFL Telegram channel.
After his recommendations caused a surge in stock prices, Bhasin would allegedly sell his holdings to book profits, leaving unsuspecting retail investors at a loss. This deceptive cycle of purchase, promotion, and profit reportedly violated multiple securities laws.
Besides Sanjiv Bhasin, SEBI’s order also named 10 other entities involved in the manipulation:
SEBI alleges that these individuals and entities either participated directly in the trading activity or facilitated it through coordinated efforts.
SEBI’s order explicitly states that Sanjiv Bhasin traded via RRB Master Securities Delhi Ltd, wherein he bought stocks before recommending them to the public. The recommendations were framed in a way that created artificial demand, misleading investors into believing that the stock was poised for strong growth.
Once the price surged following the media exposure, Bhasin would exit his position, pocketing large profits at the expense of retail traders.
During his consulting tenure, Bhasin’s investment recommendations were circulated across IIFL’s client network and social media groups, further extending his influence.
Following the interim order, IIFL Securities issued a clarification. The company stated that Bhasin was engaged on a contractual basis as a consultant and had no role in the firm’s trading operations. His contract, originally set to expire on June 30, 2024, was terminated prematurely on June 17, 2024, citing health reasons.
IIFL further clarified that it is fully cooperating with SEBI’s investigation and maintains strict compliance standards in line with regulatory norms.
SEBI’s order is interim in nature, and the accused parties will be given an opportunity to present their case before a final decision is made. Meanwhile, the impounding of ₹11.37 crore is a clear signal that SEBI is determined to crack down on fraudulent activities in the market.
This action by SEBI is expected to act as a deterrent and reinforces the regulator’s commitment to protecting investor interests and ensuring market integrity.
Retail investors who may have followed Bhasin’s televised or online stock tips could potentially have faced losses. SEBI’s move is being welcomed by investor protection groups and financial analysts as a strong step towards cleaning up unethical practices.
Market experts emphasize that while influencer-based investing can be attractive, it carries significant risks—especially when transparency and disclosures are missing.
The SEBI crackdown on Sanjiv Bhasin and his associates sends a strong message to the investment community: unethical practices and price manipulation will not be tolerated. Investors are urged to do their own due diligence before acting on stock tips, even if they come from high-profile personalities. The final verdict in this case will be crucial in setting precedents for future regulatory actions in India’s financial markets.
SEBI barred him for allegedly manipulating stock prices by buying shares and then promoting them through media and social platforms, leading to artificial price inflation for personal gains.
SEBI has ordered the impounding of ₹11.37 crore, which is the estimated unlawful gain made through the manipulation scheme.
He was the Director from 2017 to 2022 and later worked as a consultant providing stock recommendations from December 2022 to June 2024.
Ten other individuals and companies, including Lalit Bhasin, Ashish Kapur, HB Stockholdings Ltd, and others, have been restrained from market activities for their role.
This serves as a warning to investors to avoid blindly following market recommendations and highlights the need for strict regulatory oversight to protect investor interests.
