Mumbai: In a major legal development that has caught the attention of investors and market participants alike, Sanjiv Bhasin, former director at IIFL Securities, has moved the Securities Appellate Tribunal (SAT) challenging the SEBI order dated 17 June 2025. The market regulator had barred Bhasin and 11 others from accessing the securities market, accusing them of coordinated fraudulent trading and front-running stock recommendations on television and social media.
The SAT is scheduled to hear the matter on Thursday, with Bhasin being represented by the Vishesha Law firm.
SEBI’s Allegations: What’s in the 17 June Order?
According to SEBI, Bhasin and others manipulated stock prices by engaging in pre-trade activities before making public stock recommendations. The SEBI order stated that Bhasin would first buy shares and then promote those stocks on platforms like Zee Business, ET Now, and Telegram channels associated with IIFL. Once the stock prices rose due to the media exposure, Bhasin would offload his holdings, making profits from the price surge.
Such behavior, SEBI concluded, amounted to a “fraudulent or manipulative scheme”, violating the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) norms.
As per SEBI’s findings, these actions led to unlawful gains of ₹11.7 crore, for which impounding orders were issued jointly and severally against Bhasin and the others.
The SAT Petition: Bhasin’s Defense
In a 28-page petition, Sanjiv Bhasin has categorically denied all charges and sought a stay on the effect and operation of SEBI’s order. This effectively means that Bhasin is asking SAT to suspend the enforcement of SEBI’s restrictions until a final verdict is delivered.
The petition terms SEBI’s order as:
- “Perverse and arbitrary”
- “Harsh and exorbitant”
- “Unreasonable and liable to be set aside”
Bhasin argues that the regulator’s order has caused severe financial hardship, resulting in the freezing of all his bank and securities accounts.
Disputed Gains and Allegations
Bhasin has further challenged SEBI’s gain calculations, claiming they are erroneous and exaggerated. He stated:
“The calculation of gains includes profits from stocks that were neither the subject of any recommendations nor traded with intent alleged in the order.”
Moreover, Bhasin insists that no direct monetary benefit accrued to him and that no funds were credited to his accounts. The petition emphasizes that clubbing gains from multiple individuals violates the principle of personal liability, especially in the absence of evidence of joint conduct.
Timeline of Key Incidents
- January 2022: Bhasin promoted L&T Technology Services on Zee Business after taking futures positions in the stock. He exited shortly after the broadcast, making ₹1.36 lakh profit.
- 7 February 2024: He named Parag Milk Foods a “special pick” on live TV while holding 51,500 shares. He sold the shares the same day for ₹8.4 lakh profit.
- April 2017 to Nov 2022: Served as director at IIFL Securities.
- Dec 2022 to June 2024: Continued association with IIFL as a consultant, providing stock views via TV and social media.
The Astrowiz Angle
Interestingly, Bhasin is also known to share astrology-based stock tips via a platform called Astrowiz, blending technical analysis with astrological forecasting. While not directly linked to the current SEBI case, his public persona as both a market expert and astro-analyst adds another layer to the ongoing scrutiny.
Family Involvement: Lalit Bhasin Also in Legal Battle
The SEBI order also named Lalit Bhasin, Sanjiv’s cousin, who has independently moved SAT seeking relief. SAT has already reserved its order in Lalit’s case, and the outcome may influence Sanjiv Bhasin’s appeal as well.
What This Case Means for the Market
SEBI’s crackdown on Bhasin is not an isolated move. It signals a larger regulatory focus on:
- Media-influenced stock manipulation
- Conflict of interest in investment advice
- Transparency in trading by influential market voices
Market experts believe this could lead to stricter compliance norms for TV analysts, influencers, and brokerages.
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