The Securities and Exchange Board of India (SEBI) has issued an interim order restraining Sanjiv Bhasin, a well-known market commentator and former director at IIFL Securities, along with 11 others from trading in the securities market. SEBI alleges that Bhasin exploited his reach on TV channels like CNBC Awaaz, Zee Business, and Telegram to push stock recommendations—after having already accumulated positions in those stocks. He would then sell the shares at a profit, riding on the price surge created by his own influence.
Bhasin’s modus operandi, SEBI claims, involved front-running trades—buying shares just before giving favorable recommendations to the public and offloading them immediately after prices rose. SEBI calculated illegal profits of ₹11.37 crore from this scheme, which are now ordered to be impounded. The trades spanned January 2020 to June 2024 and were executed through entities like Venus Portfolios, Gemini Portfolios, and HB Stockholdings.
How the Scheme Worked
SEBI’s investigation uncovered multiple instances of manipulation. In one case from January 2022, Bhasin recommended L&T Technology Services live on Zee Business after acquiring 3,800 shares earlier that day at ₹5,641.8 apiece. He sold them soon after the broadcast for ₹5,677.79, booking a quick ₹1.36 lakh profit.
In February 2024, Bhasin pushed Parag Milk Foods as a “special stock pick,” claiming it could hit ₹300. Unknown to viewers, he had already bought 51,500 shares at ₹210–220 and sold them the same day at ₹235.45—making ₹8.4 lakh. WhatsApp messages showed he even asked dealers to confirm trades and record profits.
SEBI’s order also notes that Bhasin frequently coordinated with dealers from RRB Master Securities—run by his cousin Lalit Bhasin and brother-in-law Ashish Kapur—just before his public appearances. Phone call transcripts and trade logs supported the claim that he shared exact trade instructions minutes before his TV spots.
Legal Fallout and IIFL’s Response
SEBI has barred all 12 accused from buying or selling securities until further notice, giving them 21 days to respond. The order emphasizes that Bhasin was not a registered research analyst or investment adviser, though IIFL Securities—his employer until June 17, 2024—was.
IIFL has distanced itself from the controversy, stating that Bhasin was only a contractual consultant and not part of its board or group affiliates. His contract was terminated early, citing health reasons. The firm said it had no knowledge of SEBI’s order at the time of issuance and declined further comment.
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Legal experts believe Bhasin may appeal the decision before the Securities Appellate Tribunal (SAT), possibly arguing that his TV appearances were market commentary and not formal investment advice. But lawyers say the overwhelming evidence—trade records, call transcripts, and WhatsApp chats—could make such a defense hard to sustain.
Bigger Impact: SEBI’s Message to Media Influencers
The case signals a larger shift in SEBI’s regulatory focus. Legal analysts say it draws a clear line between public influence and market manipulation. “The Sanjiv Bhasin matter gives a clear message: media visibility, when misused, can constitute market abuse,” said Nirali Mehta of Mindspright Legal.
She added that SEBI is now holding public-facing experts to the same standard as insiders. Even Telegram and WhatsApp recommendations are being treated as public disclosures under Research Analyst Regulations.
Going forward, media platforms may be compelled to introduce stronger conflict-of-interest disclosures. Regulatory expectations around platform accountability are also set to rise. While no action has been taken against the TV channels that aired Bhasin’s recommendations, the case could lead to more stringent rules governing financial commentary on media and social platforms.