India’s market watchdog, the Securities and Exchange Board of India (SEBI), has issued an interim order barring Sanjiv Bhasin, a well-known market commentator and director at IIFL Securities, along with 11 others, from participating in the securities market. The action follows an investigation into alleged front-running activities that reportedly netted the group unlawful gains of Rs 11.37 crore.
What SEBI found
According to SEBI, Bhasin misused his media influence by recommending stocks on television and social media after having already purchased them, thereby manipulating prices and profiting once they rose. The regulatory body described this as a “fit case” for interim action to “insulate the securities market and to protect the unlawful gains from being dissipated.”
The investigation covered the period from January 2020 to June 2024 and was triggered by three separate complaints. In June 2024, SEBI conducted search and seizure operations at multiple premises and collected digital evidence to support its findings.
Penalties and restrictions
SEBI has directed Bhasin and the others to deposit the alleged gains in fixed deposits with a lien marked in favor of the regulator. They are prohibited from buying, selling, or dealing in securities, directly or indirectly, until further notice.
Key restrictions include:
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No disposal or transfer of assets, including mutual fund units and securities, without SEBI’s prior approval.
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Banks and depositories instructed to freeze debits from accounts linked to the noticees.
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RRB Master Securities Delhi Ltd (Noticee No. 4), the brokerage used by Bhasin for executing the trades, has also been barred from proprietary trading.
What’s next?
The interim order serves as a show-cause notice. The accused have been granted 21 days to respond and request a personal hearing. SEBI has stated that the findings are prima facie and that the investigation is ongoing. The restrictions will remain in place until further directions are issued.
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