SEBI Cracks Down on Sanjiv Bhasin, 11 Others in ₹11.37 Crore Front-Running Scandal

India’s capital markets watchdog, the Securities and Exchange Board of India (SEBI), has issued a sweeping interim order barring well-known market expert Sanjiv Bhasin and 11 associates from participating in the securities market. The action follows an investigation that uncovered a front-running scheme resulting in illegal profits amounting to ₹11.37 crore.

SEBI’s Detailed Order

In its detailed order issued Tuesday, SEBI accused Bhasin—currently a director at IIFL Securities Ltd—of manipulating stock prices for personal gain. According to the findings, Bhasin allegedly purchased stocks ahead of making bullish recommendations on national television and social media platforms. These endorsements led to a price surge, allowing him to exit with profits.

“This is a fit case to exercise powers of passing an interim order so as to insulate the securities market and to protect the unlawful gains from being dissipated,” SEBI said in its order.

Penalty by SEBI

As part of the interim directive, Bhasin and the others named in the order have been instructed to deposit the impounded ₹11.37 crore in fixed deposits with a lien in favour of SEBI. All twelve individuals have been banned from buying or selling securities, directly or indirectly, until further notice.

The order is the outcome of a probe covering the period from January 2020 to June 2024. It was initiated following three separate complaints that flagged suspected stock manipulation involving Bhasin. In June 2024, SEBI conducted extensive search-and-seizure operations, collecting digital evidence from multiple locations linked to the accused.

Also Read: SEBI Approves Tuesday Expiry for NSE, Thursday for BSE

Among the entities implicated is RRB Master Securities Delhi Ltd—designated as Noticee No. 4—which facilitated the disputed trades. The brokerage firm has now been prohibited from engaging in proprietary trading.

Further enforcement measures include:

• A freeze on asset transfers and the sale of securities or mutual fund holdings without prior SEBI approval
• Instructions to banks and depositories to block debits from the concerned accounts

SEBI’s order also functions as a show-cause notice, requiring Bhasin and the others to explain why stricter penalties—including a permanent market ban, interest-bearing disgorgement of gains, and monetary fines—should not be levied. The accused has 21 days to respond and may request a personal hearing.

Conclusion

SEBI clarified that the current findings are preliminary, and the investigation remains ongoing. The interim restrictions will continue to apply until further orders are given.

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