Date: June 17, 2025
The Indian financial landscape was shaken on June 17, 2025, as the Securities and Exchange Board of India (SEBI) released a scathing interim order unearthing a ₹11.37 crore stock market manipulation scheme. At the center of the controversy: Sanjiv Bhasin, a household name in equity markets and a frequent face on financial news channels.
This case not only highlights the sophistication of modern-day securities fraud but also raises pressing concerns about the credibility of televised stock recommendations.
Key Takeaways
- SEBI uncovers ₹11.37 crore market manipulation by Sanjiv Bhasin and 11 others.
- Scheme involved front-running via televised stock recommendations.
- Digital evidence and financial trails cement SEBI’s case.
- Interim actions include trading bans, asset freezes, and impounding of gains.
- Raises urgent questions about media accountability and investor vigilance.
Who Is Sanjiv Bhasin and What Was the Alleged Scheme?
Sanjiv Bhasin, a well-known face on financial television and former Executive VP and Director of Equity Research at IIFL, is accused of orchestrating an elaborate front-running operation. According to SEBI, he leveraged his media clout to push stock recommendations after personally or indirectly taking positions—resulting in illegal gains totaling ₹11.37 crore.
Breakdown of the Manipulation Modus Operandi
Pre-positioning → TV appearance → Stock surge → Reverse trade → Profit sharing
- Pre-positioning Trades: Before going live on television, Bhasin allegedly instructed dealers to buy stocks in specific accounts.
- On-Air Stock Tips: He would then promote these stocks during TV appearances.
- Profit Booking: After the stock price surged due to public interest, his team would reverse the trades and book profits.
- Cash Settlements: Illegally obtained profits were shared among the network via informal cash channels.
Inside the Network: Key Players Named in SEBI’s Interim Order
SEBI identified a network of 12 interconnected entities:
| Noticee | Role |
|---|---|
| Sanjiv Bhasin (Noticee 1) | Lead conspirator and public recommender |
| Lalit Bhasin (Noticee 2) | Advisor and profit-sharing participant |
| Ashish Kapur (Noticee 3) | MD of RRB Master, authorized the trades |
| RRB Master (Noticee 4) | Brokerage firm facilitating transactions |
| Venus, Gemini, Leo Portfolios; HB Stock Holdings | Trading entities used to mask manipulative trades |
Evidence That Strengthened SEBI’s Case
1. Digital Forensics
- WhatsApp chats and call records provided a timeline of trading instructions and executions.
- Trade patterns closely matched Bhasin’s public recommendations.
2. Financial Audit Trail
- Cash transfers traced to profit-sharing meetings at Connaught Place.
- Internal documentation revealed detailed profit allocation strategies.
Legal Violations Cited in SEBI’s Order
SEBI’s interim ruling points to serious breaches of Indian securities law, including:
- SEBI Act, Section 12A: Fraudulent and deceptive trading practices
- Research Analyst Regulations:
- Trading in securities within restricted periods
- Failure to disclose financial interests in recommended stocks
SEBI’s Immediate Enforcement Measures
Financial Sanctions
- ₹11.37 crore impounded from accused entities, to be held in fixed deposits under SEBI’s lien
- Joint liability imposed on all accused for full recovery
Market Access Restrictions
- Trading ban: All accused barred from accessing markets
- Account freezes: All related bank and demat accounts blocked
- Asset freeze: Prohibited from disposing of assets until recovery is completed
The Broader Fallout: Trust, Transparency, and Responsibility
Investor Confidence in Media Shaken
This case sends a chilling message: Even trusted financial experts can misuse their platforms. It’s a wake-up call for investors to scrutinize every recommendation, especially those coming from high-profile media personalities.
SEBI’s Proactive Use of Tech
SEBI’s reliance on digital surveillance, call data analysis, and forensic accounting showcases the increasing role of technology in financial regulation. This also reinforces SEBI’s stance as a proactive guardian of market fairness.
Protecting the Retail Investor
This case underlines the importance of:
- Independent due diligence
- Diversifying information sources
- Skepticism toward “guaranteed” stock tips
What Comes Next? Final Adjudication and Possible Penalties
Currently in the interim phase, the accused have 21 days to respond. Possible outcomes in the final order include:
- Permanent bans from participating in securities markets
- Hefty monetary penalties
- Criminal prosecution if the findings hold under judicial review
Lessons for the Indian Capital Markets
For Retail Investors
- Trust but verify: Always research before acting on TV stock tips.
- Know the source: Check if the tipster has a vested interest.
- Beware of timing: Be cautious of recommendations that appear too well-timed.
For Media Organizations
- Stricter vetting of guest analysts and experts
- Mandatory disclosure of financial interests
- Internal monitoring systems to flag unusual activity
For Regulators
- Continue investing in surveillance tools
- Issue swift interim orders to curb ongoing manipulation
- Ensure public awareness campaigns around stock market fraud
Conclusion: A Watershed Moment for Market Ethics
The Sanjiv Bhasin case is more than just a regulatory crackdown—it’s a litmus test for market ethics in India. While deeply troubling, this exposure of wrongdoing may ultimately strengthen trust in the system if met with strong, transparent, and sustained corrective action.
As investors, intermediaries, or media channels, the responsibility is collective. Only through vigilance, regulation, and ethical conduct can the Indian capital market preserve its credibility.
Final Note: The information in this blog is based on SEBI’s interim order dated June 17, 2025. The case is under investigation, and all accused are presumed innocent until proven guilty in a court of law.
Click here to read SEBI interim order.
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