Sebi allows Sanjiv Bhasin to trade again after Rs 1 crore deposit following SAT order

Synopsis

Sebi has de-frozen Sanjiv Bhasin’s trading and demat accounts after he deposited Rs 1 crore, complying with SAT’s directive. The former IIFL director remains under investigation for alleged stock manipulation involving profit-making trades before media recommendations. In the appeal filed before SAT, Bhasin said that the maximum profit alleged to have been made is Rs 62.75 lakhs even if the calculation made by Sebi is taken at the highest.

Market regulator Securities and Exchange Board of India (Sebi) has directed exchanges to de-freeze Sanjiv Bhasin's trading and demat accounts after the former IIFL director deposited Rs 1 crore with the Sebi in compliance with the Securities Appellate Tribunal (SAT).

The SAT's August 1 order came on an appeal filed by Bhasin against a Sebi interim order that had barred him from accessing capital markets over alleged stock manipulation.

"Further, Hon’ble SAT vide order dated August 1, 2025 directed above noticee to deposit a sum of Rs 1 Crore in a fixed deposit with lien mark in favour of SEBI. Subject to such deposit, the accounts frozen by the SEBI shall be released. SEBI has communicated above entity has complied with the aforesaid direction of Hon’ble SAT and directed to de-freeze trading/demat accounts of pertaining said entity," NSE said in a circular, informing about a development.

In the appeal filed before SAT, Bhasin said that the maximum profit alleged to have been made is Rs 62.75 lakhs even if the calculation made by Sebi is taken at the highest. Bhasin urged the appellate tribunal to stay the direction for disgorgement and allow it to approach the regulator to participate in the proceedings by imposing a minimum amount.

Market manipulation case

Bhasin, at the centre of a regulatory storm over alleged stock manipulation, has been barred from accessing the capital markets. The market regulator in its June 17 interim order had ordered impounding of unlawful gains amounting to Rs 11.37 crore.

Sanjiv Bhasin, in the capacity of director IIFL, used to appear in various media channels as a guest expert and provide stock recommendations. Sebi noted that before appearing on media channels for giving stock recommendations, he took positions (majorly buy) in entities Venus Portfolios Private Limited, Gemini Portfolios Private Limited and HB Stockholdings Limited, which the regulator identified as profit makers in the alleged fraudulent scheme devised by him.

Bhasin traded through a broker named RRB Master Securities Delhi Limited where he first bought securities himself and then recommended the same securities to the public on news channels or IIFL Telegram Channel.

The trades were made through Jagat Singh and Rajiv Kapoor who were dealers of RRB Master.

Sebi noted that the stock recommendation in media channels included those scrips in which he had already taken position (majorly buy). Those recommendations used to create a huge impact on the price/volume of the stock, owing to his large viewership.

Once the prices of securities increased after his recommendations, Bhasin used to sell the securities, making a profit.

"Accordingly, Sanjiv Bhasin manipulated the price of securities and made ill-gotten gains," the order read.

This is an interim order passed by Sebi's Whole Time Member Kamlesh C. Varshney.

Sebi conducted an investigation for the period from January 1, 2020 to June 12, 2024 to arrive at the findings. It had received three complaints in September-October 2023.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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