India’s markets regulator SEBI has dropped a regulatory bombshell, barring well-known market analyst Sanjiv Bhasin and 11 associates from trading in securities, alleging a systematic front-running scheme that exploited public trust and broadcast influence. With ₹11.37 crore in unlawful gains frozen, the action marks one of the most high-profile crackdowns in recent memory.
A Broadcast Boomerang: Market Star Accused of Front-Running His Own Recommendations
The Securities and Exchange Board of India (SEBI) has taken decisive action against Sanjiv Bhasin, a prominent market commentator and Director at IIFL Securities Ltd, for allegedly orchestrating a front-running scheme involving televised stock tips and coordinated share trades. In an interim order issued on Tuesday, SEBI barred Bhasin and eleven others from the securities market, pending a full investigation.
Bhasin is accused of exploiting his visibility on financial news channels and social media to drive up stock prices. According to SEBI’s findings, Bhasin and his group would buy select stocks before promoting them on live television. Following the surge in public interest and price rise, they would offload their holdings, pocketing significant profits.
“These activities appear to be a classic case of market abuse,” SEBI stated. “The manipulation not only undermines investor trust but also distorts the integrity of the capital markets.”
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Cracking the Code: SEBI’s Surveillance and Search Operations
The case originated from three separate investor complaints filed between 2023 and 2024. These red flags prompted SEBI to initiate a detailed investigation covering trades from January 2020 to June 2024.
In a rare and aggressive move, SEBI conducted search and seizure operations in June 2024 across multiple premises associated with Bhasin and his network. Data was collected from phones, computers, and other electronic devices, revealing a pattern of synchronized trades and televised recommendations.
One key player, RRB Master Securities Delhi Ltd, identified as “Noticee No. 4”, was the primary broker used to execute these trades. SEBI has barred the firm from proprietary trading until further notice.
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₹11.37 Crore Impounded, Market Access Blocked, and a 21-Day Ultimatum
SEBI’s interim order mandates that Bhasin and his associates deposit the impounded gains, totalling ₹11.37 crore, in fixed deposits with liens marked in SEBI’s favour. All 12 individuals have been prohibited from buying, selling, or dealing in securities, directly or indirectly.
Banks and depositories have been instructed to block any debits from the concerned accounts and prevent the sale or transfer of any assets, including mutual fund units and shares. The interim order also serves as a show-cause notice. The accused have 21 days to respond and may seek a personal hearing before SEBI takes a final view. The regulator has left the door open for more stringent sanctions, including permanent bans and further monetary penalties.
About the author – Prakriti Jha is a student at National Forensic Sciences University, Gandhinagar, currently pursuing B.Sc. LL.B (Hons.) with a keen interest in the intersection of law and data science. She is passionate about exploring how legal frameworks adapt to the evolving challenges of technology and justice.