SEBI’s Ex-Parte Interim Order Against Sanjiv Bhasin et al.: Key Takeaways for Investors

Introduction

On June 12, 2025, SEBI issued an ex-parte interim order cum show-cause notice against Sanjiv Bhasin, Director of IIFL Securities, and a network of related entities. The order alleges a sophisticated front–running and price-manipulation scheme carried out through televised stock recommendations. This case highlights the importance for all investors—retail and institutional alike—to exercise rigorous due diligence before acting on market tips broadcast in media forums.

Background

Noticees & Scope

SEBI’s order names twelve noticees, including:

• Sanjiv Bhasin
• RRB Master Securities Delhi Ltd.
• Several portfolio companies (Venus, Gemini, HB, Leo)
• Individual dealers and beneficiaries

Legal Framework

The action was initiated under Sections 11(1), 11(4), 11(4A) and 11B of the SEBI Act, 1992, along with Regulation 11 of the PFUTP Regulations, 2003, which prohibit fraudulent and unfair trade practices in securities markets.

Key Findings

Pre-Broadcast Positioning

• Bhasin was found to take large buy positions in targeted stocks via connected entities prior to media appearances.

Televised Recommendations

• During live TV segments (Zee Business, ET Now, CNBC), Bhasin issued “buy” calls on stocks where allied accounts had been pre-loaded with holdings.

Immediate Profit Booking

• Seconds after recommending stocks on air, allied accounts were instructed to offload positions, locking in gains at the expense of retail viewers.

Collusion Among Entities

• SEBI’s investigation revealed coordinated trades among promoters, dealers, and portfolio vehicles. Call data and KYC analysis showed real-time communication to execute this scheme.

Implications for Investors

Beware of Unverified Media Tips

• Market recommendations from media, even from prominent experts, can be front-run. Always verify and corroborate with your own analysis.

Verify Registration & Disclosures

• Ensure the individual providing investment advice is SEBI-registered as an Investment Advisor or Research Analyst.

Perform Independent Valuation

• Rely on fundamental analysis: revenue trends, profit margins, valuations, rather than momentum driven by broadcast hype.

Maintain a Long-Term Perspective

• Short-term spikes caused by media chatter can lead to volatility and slippage for late entrants.

Best Practices for Due Diligence

Disclaimer

This blog is intended for educational purposes only and does not constitute investment advice. Investors should conduct their own research before making investment decisions.