Introduction
In a major move underscoring its commitment to fair markets, the Securities and Exchange Board of India (SEBI) has issued an interim ban against stock market analyst Sanjiv Bhasin and 11 others for alleged front-running activities. The regulator has also impounded 11.4 crore (approx.) in suspected unlawful gains. This action marks a pivotal moment in reinforcing market integrity, especially given the prevalence of stock recommendations across digital media.
What Exactly Happened?
On June 17, 2025, SEBI issued an interim order barring Sanjiv Bhasin, a former IIFL Securities executive, along with 11 other insiders, from participating in the securities markets. The order cites alleged deliberate buying of shares ahead of public recommendations by Bhasin on business television channels (such as Zee Business, ET Now) and on the IIFL Telegram channel. Once these recommendations caused a spike in share prices, Bhasin and his co-accused allegedly offloaded their positions for profit . SEBI impounded ₹11.37 crore, stating these were illegitimate gains obtained from January 1, 2020, to June 12, 2024.
Who Is Sanjiv Bhasin?
Sanjiv Bhasin, formerly with IIFL Securities, was widely known for his stock tips on TV and Telegram. Under his recommendations, investor attention surged, often leading to sharp price jumps in small- and mid-cap stocks. SEBI alleges that Bhasin bought positions in targeted securities before issuing public advisories—this is classic front-running, where insiders exploit non-public information for financial gain.
Understanding the Alleged Scheme
1. Positioning the Trade
Bhasin and associates allegedly acquired shares ahead of his own public stock recommendations.
2. Media Recommendations
Once positions were secured, Bhasin appeared on TV and Telegram, advocating buys for these very stocks—leveraging his influencer status to trigger demand.
3. Sale at Peak Prices
As stock prices surged post-recommendation, Bhasin and others reportedly exited their positions, cashing in the profit.
4. Who Else Was Involved?
SEBI also named Bhasin’s cousin Lalit Bhasin, along with Ashish Kapur, Praveen Gupta, Rajiv Kapoor, and Jagat Singh, who allegedly placed trades through RRB Master Securities and related entities.
SEBI’s Investigation
The investigation, spanning from January 1, 2020, to June 12, 2024, began in response to complaints filed in September–October 2023. SEBI’s 149-page interim order, issued by Whole-Time Member Kamlesh C. Varshney, outlines:
- The coordinated buying before public recommendations
- Use of private communication channels like WhatsApp and direct broker liaisons
- Roles of various individuals who facilitated or executed illicit trades
- Legal basis under PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) and Research Analyst Regulations
Fragment from the order:
“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…”
Impounding 11.4 Crore
SEBI has directed that 11.37 crore (reported as 11.09 crore in some sources) be impounded and held in fixed deposits under SEBI’s lien. The funds come from Bhasin and others jointly. These funds are blocked until final adjudicatory proceedings conclude.
Terms of SEBI’s Interim Order
- Market Ban: All 12 individuals barred from trading or participating directly or indirectly in securities until further orders.
- Immediate Block: SEBI exercised interim powers without prior notice to prevent harm and dissipation of gains.
- Show-Cause Notices: Each individual has 21 days to respond. The order remains effective until further communication.
Reactions from IIFL and Others
IIFL Securities, where Bhasin had been a director until June 2024, commented:
“Bhasin had informed the company about SEBI’s probe but did not disclose details. He was not a member of the board of directors of IIFL Securities or any other group company or its affiliates.”
Bhasin has not yet issued a public response.
Why This Matters
- Market Integrity Threat
Front-running erodes investor trust. SEBI’s stern measures highlight a zero-tolerance stance on manipulation. - Media Influence & Role of Analysts
The case underscores how market media and influencers may be used to sway asset prices. - Regulatory Clarity
It serves as a precedent for applying PFUTP and Research Analyst Regulations in digital-era trading. - Investor Awareness
Heightens investor vigilance regarding the timing and authenticity of stock tips, especially those disseminated widely.
Key Keywords in Focus
- sanjiv bhasin – central subject of the order
- sanjiv bhasin news – trending topic across media
- sanjiv bhasin iifl – his connection to IIFL Securities
- sanjiv bhasin sebi probe front running – context of regulatory scrutiny
- sanjiv bhasin sebi ban – the result of SEBI’s interim order
SEBI’s Broader Front-Running Crackdown
This isn’t an isolated case. SEBI has stepped up enforcement in recent years, targeting:
- Institutional and retail front-running
- Insider trading
- Wash trading
- Misuse of research analyst status
The Bhasin case follows high-profile enforcement actions in 2023 and 2024, reinforcing SEBI’s aggressive posture.
What’s Next?
- Replies & Hearing: Noticees have 21 days to file responses.
- Final Hearing: Post-interim order, SEBI will offer formal hearings to decide on lasting penalties.
- Potential Penalties: Aside from market bans, SEBI may levy monetary fines or bar entities from advisory roles.
Reader Q&A
Q: Who is banned?
A: Sanjiv Bhasin plus 11 associates, including Lalit Bhasin, Ashish Kapur, Praveen Gupta, Rajiv Kapoor, and Jagat Singh.
Q: How much money was impounded?
A: 11.37 crore (some outlets round it to 11.4 crore).
Q: What is front-running?
A: Buying securities ahead of a public recommendation to profit from the ensuing price rise.
Q: How long is the ban?
A: Effective immediately, until further SEBI intervention.
Q: Can Bhasin appeal?
A: Yes, he and others can respond and mount appeals during final adjudication.
Implications for Investors & Market Participants
- Media Skepticism: Investors should rigorously assess tips, especially from TV and Telegram, and verify timing against trading records.
- Regulatory Vigilance: Brokers, platforms, and analysts face heightened regulatory oversight.
- Deterrence: Bans and impounds are expected to deter similar malpractices.
- Transparency Push: Markets may demand clearer disclosures of holdings and connections between analysts and recommended stocks.
Final Takeaway
The SEBI ban on Sanjiv Bhasin is a pivotal step in curbing front-running and upholding market fairness. Impounding11.4 crore sends a strong message—insiders will not be allowed to exploit public trust.
Stay updated with sanjiv bhasin news, track the sanjiv bhasin sebi probe front running, and watch commentary on the sanjiv bhasin sebi ban. Investors would also be wise to review the timing and source of stock tips before acting. SEBI’s action underscores a clear warning: fair and transparent markets are non-negotiable.
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