SEBI Cracks Down: Sanjiv Bhasin & 11 Others Accused in ₹11.3 Crore Stock Manipulation Scheme

In a landmark enforcement action, the Securities and Exchange Board of India (SEBI) has acted decisively against alleged stock market manipulation involving Sanjiv Bhasin and 11 others. SEBI has ordered the impounding of ₹11.3 crore in suspected unlawful gains and imposed multi-year market bans, showcasing its firm stance on safeguarding market integrity and investor interests.

Who Is Sanjiv Bhasin?

A familiar name in India’s stock market circles, Sanjiv Bhasin was the former Director of IIFL Securities Ltd., one of India’s largest retail brokerage firms. His frequent appearances on financial news channels made him a trusted voice for many retail investors.

However, recent developments have cast a long shadow on his public image, as SEBI has accused him of being the mastermind behind a multi-entity market manipulation scheme.

Entity Involved: IIFL Securities (Past Association)

While IIFL Securities Ltd. is not directly implicated in the scam, Bhasin’s long-standing association with the firm has attracted public attention. The alleged manipulation was reportedly conducted independently by Bhasin and a close network of individuals, including his wife, Madhu Bhasin, and brother-in-law, Pawan Bhasin.

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Nature of the Alleged Fraud

SEBI’s probe uncovered a “Pump and Dump” stock price manipulation scheme, where share prices were artificially inflated using synchronized trades in the cash market. Profits were then booked in the Futures & Options (F&O) segment.

Modus Operandi: How the Alleged Scam Was Executed

1. Network of Entities: Trades were routed through 11 connected parties, all reportedly under Bhasin’s control.
2. Closing Bell Strategy: Large buy orders were placed in the last 30 minutes of trading to inflate prices.
3. F&O Segment Profiteering: Parallel short positions in the F&O market were then liquidated for gains.
4. Next-Day Dumping: Shares were sold off the next day, often triggering price corrections.
5. Circular Funding: Funds were allegedly rotated between accounts to camouflage the origin of trades.

How SEBI Detected the Manipulation

Thanks to its AI-powered surveillance tools, SEBI identified suspicious patterns like:

• Abnormal price jumps near market close
• Coordinated trading across accounts
• Unusual F&O and cash market linkages
• Recurring profit-making cycles by linked parties

These red flags led to a detailed investigation involving trade logs, fund flow audits, and digital communication trails.

Timeline & Scam Details

• Year of Alleged Fraud: 2019
• Unlawful Gains: ₹11.3 crore (₹11,30,77,899)
• SEBI Final Order Date: June 13, 2024

SEBI’s Key Directives

• Impound ₹11.3 crore: Must be deposited in an escrow account within 15 days
• 7-Year Ban: On Sanjiv Bhasin from accessing the securities market
• Directorship Ban: Bhasin cannot hold key roles in listed companies or SEBI-regulated entities
• Varying Bans: Other 11 entities banned for 1–7 years based on individual involvement

Note: No criminal arrests have been made yet. The current order is administrative; criminal proceedings may follow if referred to law enforcement.

Also Read: TVS Group Listed Companies: Pioneers of India’s Auto Evolution with a Rich Family Legacy

Right to Appeal

All accused parties, including Bhasin, have the right to appeal the order before the Securities Appellate Tribunal (SAT) within 45 days. This legal route could potentially alter the regulatory actions taken.

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Final Thoughts

SEBI’s crackdown on Sanjiv Bhasin and others sends a clear message to all market participants: manipulation won’t go unnoticed or unpunished. While legal proceedings continue, this case serves as a powerful reminder of the risks of following unverified tips or media-driven hype.

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