SEBI Bars Sanjiv Bhasin, Others in ₹11.37 Cr Fraud Case | BizGossips

SEBI Bars Sanjiv Bhasin, 11 Others in ₹11.37 Crore Fraudulent Trading Case

BizGossips | Market Watch | June 18, 2025

In a dramatic development shaking the Indian stock market ecosystem, the Securities and Exchange Board of India (SEBI) has barred Sanjiv Bhasin, former director of IIFL Securities, and 11 others for allegedly participating in a fraudulent trading scheme. The regulatory authority has also ordered the impounding of ₹11.37 crore — the amount believed to be unlawfully gained through the manipulation.

The Allegations: Trading Before Tipping

According to SEBI’s ex-parte interim order, Sanjiv Bhasin was found engaging in a “front-running style” fraud where he and connected entities would buy stocks shortly before recommending them on popular business news channels and Telegram channels linked to IIFL. These recommendations would artificially inflate demand and price, allowing Bhasin and his circle to sell at a profit, directly contradicting the advice given to retail investors.

📉 “This was a classic case of pump-and-dump. The recommendations misled retail investors while insiders pocketed profits,” SEBI noted in its order.

The scheme not only compromised investor trust but also violated multiple provisions under SEBI’s Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) regulations.

Sanjiv Bhasin’s Role and Timeline

• Director at IIFL Securities: April 2017 – November 2022

• Consultant at IIFL: Until June 2024

• Media Guest/Stock Advisor: Frequently seen on national business TV channels and digital platforms

During his tenure, Bhasin used television appearances and Telegram groups to give out stock tips — a method that built his credibility among small investors. But SEBI alleges these tips were strategically timed after purchasing the stocks through connected entities, ensuring pre-mediated profits.

SEBI’s Action: Not Just a Ban, But a Message

The SEBI order includes:

• Immediate ban on trading for all 12 entities

• Impounding of ₹11.37 crore in suspected illegal profits

• Further investigation and potential prosecution under the SEBI Act

💼 “Such misuse of media visibility and client trust for personal gain is a grave threat to market integrity,” said a senior SEBI official, speaking to BizGossips on condition of anonymity.

Impact on Retail Investors and Market Sentiment

This scandal has rocked investor confidence, especially among retail traders who followed Bhasin’s advice based on his industry standing and media presence. The incident also brings into question the ethics and transparency of financial influencers in the Indian market.

BizGossips Takeaway

At BizGossips, we see this case as a wake-up call for both market participants and regulators. It exposes a dangerous trend of “tip-based manipulation” under the guise of expert advice, especially on digital platforms. As India's stock market deepens, the role of digital financial influencers must come under stricter oversight to protect small investors.

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💬 What do you think about SEBI’s move? Is banning enough or should stricter penalties be imposed?