Mumbai | June 17, 2025 — The Securities and Exchange Board of India (SEBI) has taken stringent action against well-known market commentator and former IIFL Securities director, Sanjiv Bhasin, along with 11 associates, for allegedly executing a coordinated scheme of manipulative trading. In its interim order, SEBI has restricted all twelve individuals from engaging in securities transactions and ordered the impoundment of ill-gotten gains totaling ₹11.37 crore.

According to SEBI’s detailed 149-page report, Bhasin is accused of purchasing stocks through accounts tied to him or his relatives—such as Venus Portfolios, Gemini Portfolios, and HB Stockholdings—just before publicly recommending the same stocks on popular television channels like CNBC Awaaz, Zee Business, and ET Now, as well as through IIFL’s Telegram channel.

Once these televised recommendations caused stock prices to rise, Bhasin allegedly offloaded his positions, reaping substantial profits—often directly contradicting the buy advice he had just issued to the public.

SEBI’s investigation, which spanned January 2020 to June 2024, uncovered a pattern of trades funneled through RRB Master Securities, operated by Bhasin’s relatives. Call recordings and WhatsApp messages reviewed by the regulator further confirmed his hands-on involvement in orchestrating trades and coordinating with brokers just ahead of his media appearances.

Case in Point

One illustrative incident occurred on January 11, 2022, when Bhasin endorsed L&T Technology Services live on Zee Business. Prior to the recommendation, he had accumulated 3,800 shares via futures at ₹5,641.8 and exited his position shortly after the TV appearance at ₹5,677.79—netting a profit of ₹1.36 lakh.

In another instance dated February 7, 2024, Bhasin pushed Parag Milk Foods as a “special stock pick” with a target of ₹300. However, SEBI discovered that he had already bought 51,500 shares earlier that day and sold them post-recommendation at ₹235.45, securing an estimated gain of ₹8.4 lakh.

Regulatory Breach and Ethical Concerns

SEBI noted that although IIFL Securities is registered as a research analyst and investment adviser, Bhasin himself was never individually registered under either category—raising concerns over regulatory violations and investor deception.

“Retail investors likely acted on his televised advice, unaware that he was simultaneously exiting those very trades,” SEBI’s order said. “Such conduct severely undermines market integrity.”

Pending a final ruling, SEBI has barred all 12 individuals from participating in the securities market and provided them with 21 days to respond or request a hearing.

IIFL’s Response

IIFL Securities issued a clarification distancing itself from the controversy, stating that Bhasin was only a contractual consultant until June 2024. “His association ended prematurely on June 17, 2024, due to health concerns,” the company said, adding that Bhasin was never part of its Board or any affiliate governance structure.

Legal Outlook and Industry Implications

Legal experts suggest that Bhasin’s team may challenge SEBI’s conclusions, possibly arguing that his TV appearances were informal commentary rather than regulated investment advice. However, given the volume of evidence—including transaction timing, call logs, and message trails—experts believe such defenses may face an uphill battle, similar to the precedent set in the Hemant Ghai case.

Nirali Mehta, a partner at Mindspright Legal, emphasized that SEBI’s action marks a shift in enforcement priorities. “This sends a strong signal—public visibility does not exempt one from accountability,” she said. “Even informal platforms like Telegram or WhatsApp are now under SEBI’s regulatory radar.”

She added that the media may also face future compliance obligations, including mandatory conflict-of-interest disclosures by on-air experts.

Broader Market Impact

While no action has been taken against the television networks involved, the episode may catalyze stronger scrutiny of financial influencers and media commentators. Observers expect a rise in due diligence and content transparency, aiming to safeguard retail investors from manipulative practices disguised as expert opinions.