How SEBI Uncovered Sanjiv Bhasin Alleged Stock Manipulation Scheme

June 18, 2025: On June 17, 2025, the Securities and Exchange Board of India (SEBI) issued an ex-parte interim order barring Sanjiv Bhasin, a former executive at IIFL Securities, and 11 others from participating in the securities markets.

The regulatory action stems from allegations of stock manipulation, specifically a “pump and dump” scheme. SEBI’s investigation revealed that Bhasin, utilizing his position at IIFL Securities, provided stock recommendations on media platforms such as Zee Business, ET Now, and IIFL’s Telegram channel. He allegedly purchased shares of certain companies before publicly recommending them, causing a surge in stock prices, and subsequently sold his holdings for profit .

The investigation covered the period from January 1, 2020, to June 12, 2024, and concluded that Bhasin and his associates generated approximately ₹11.37 crore (approximately $1.3 million) in unlawful gains through these activities. As part of the enforcement action, SEBI has ordered the impounding of these illicit gains .

IIFL Securities clarified that Bhasin was associated with the company as a consultant on a contractual basis, with his term ending on June 30, 2024. However, due to health reasons, his contract was discontinued prematurely on June 17, 2024. The company stated that Bhasin had informed them about SEBI’s enquiry but did not disclose specific details, and emphasized that he was not a member of the board of directors of IIFL Securities or any other group company or affiliates .

This case underscores SEBI’s commitment to maintaining market integrity and protecting retail investors from potential market manipulation. The regulator’s actions highlight the importance of ethical practices in the dissemination of stock recommendations and the need for transparency in financial markets.