Stock manipulation: SEBI bars Sanjiv Bhasin, others from securities market, directs seizure of Rs 11.37 crore

Market regulator Securities and Exchange Board of India (SEBI) has barred Sanjiv Bhasin who was long associated with IIFL Securities, and several of his associates from accessing the securities market. They are also prohibited from buying, selling, or dealing in securities, either directly or indirectly.

The Sebi order, released Tuesday, comes in connection with an ongoing probe into an alleged pump-and-dump scheme. SEBI’s investigation, which began in June 2024, revealed that Bhasin directed a private company to purchase specific stocks, which he later recommended on television, influencing prices and trading volumes.

SEBI alleged that this manipulation led to unlawful gains amounting to Rs 11.37 crore. This entire sum is to be impounded jointly and severally by the involved parties. As per SEBI’s directive, the accused are required to deposit the full amount in fixed deposit accounts with Scheduled Commercial Banks, with a lien marked in favour of SEBI. These funds will remain frozen until further notice from the regulator.

According to the order, the accused are completely restrained from participating in the securities market. Noticee No. 4, RRB Master Securities Delhi Limited, has been specifically barred from dealing in securities through its proprietary account.

In an interim order passed by Whole Time Member Kamlesh C. Varshney, the market watchdog held that Bhasin used to first buy securities himself and then recommended the same securities to the public on news channels and IIFL's telegram channel.

"After analysing all evidences on record, I hold that this is a fit case to exercise powers of passing interim order so as to insulate the securities market and to protect the unlawful gains from being dissipated further, which may go beyond the regulatory reach," the order said further.

As per the Sebi order: 

SEBI has issued strict interim measures against Sanjiv Bhasin and 11 others. Banks holding their accounts must not allow debits without SEBI’s permission, except for transferring funds to fixed deposits with a lien in SEBI’s favour. Credits are allowed. Noticee No. 4’s client fund accounts are exempt due to stockbroker status.

Demat accounts are similarly frozen for debits, with credits allowed. Exemptions apply to client securities held by Noticee No. 4.

All mutual fund and securities redemptions are barred, and the sale of movable or immovable assets is prohibited unless SEBI grants approval. Noticees must submit a full inventory of assets within 15 days.

Once the impounded amount of Rs 11.37 crore is deposited, these restrictions may be lifted. Existing derivative positions may be closed or allowed to expire within 3 months. Transactions made before the order date may be settled normally.

This interim order also serves as a Show Cause Notice. SEBI is considering further penalties, including disgorgement of gains, market access bans, de-association from intermediaries, and financial penalties under SEBI Act provisions.

Noticees have 21 days to respond and may request a personal hearing. The order takes immediate effect and remains in force until further notice.

What Sebi found during probe

Bhasin, who regularly appeared as a guest on business news channels, was found to have engaged in front-running activities. SEBI also barred Lalit Bhasin and Ashish Kapur, identifying them as key enablers in facilitating the unlawful gains.

Additionally, Rajiv Kapoor, Jagat Singh, and Praveen Gupta were named as information misusers in the case. SEBI noted that these individuals may have also profited from the illegal trades conducted as part of the scheme.

The crackdown is part of SEBI’s wider efforts to curb market manipulation and protect investor interests. Pump-and-dump schemes, where stock prices are artificially inflated through misleading recommendations and then offloaded for profit, are a serious violation of market integrity.