Mint Explainer: How Sebi uncovered Sanjiv Bhasin's alleged stock manipulation scheme

An ex-parte interim order by Sebi is a temporary order that's issued without hearing the other party to prevent potential harm to investors or the securities market. These orders are usually issued during investigations or inquiries to prevent further mischief or protect the interests of investors.

Mint explains what the order says, how Sebi unearthed the scheme, and what it means for investors.

Who is Sanjiv Bhasin and why is he under Sebi’s scanner?

As per Sebi's order, Sanjiv Bhasin is a market expert who frequently appeared on business news channels such as Zee Business, ET Now and CNBC Awaaz, offering stock tips and investment advice. He was also active on IIFL’s Telegram channel and often introduced as ‘director, IIFL’ during media appearances.

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However, Sebi's 149-page interim order cum show cause notice dated 14 June paints a different picture. It alleges that Bhasin exploited his media visibility to push stock recommendations that served the financial interests of entities linked to him, rather than those of the retail investors who acted on his advice.

What does Sebi allege?

According to Sebi, Bhasin and a group of associates engaged in a "pump and dump" scheme. Here’s how it allegedly worked:

• Stocks were accumulated in advance in the accounts of firms such as Venus Portfolios, Gemini Portfolios and HB Stockholdings—companies directly or indirectly controlled by Bhasin’s associates and family members.
• Bhasin then recommended these same stocks on national television or IIFL’s Telegram channel, typically presenting a bullish view with specific targets.
• These public endorsements led to brief spikes in price and trading volumes.
• The pre-positioned shares were then quickly sold during the rally—often within minutes—at a profit.

This pattern, repeated across multiple trades, has been described by Sebi as a violation of the Sebi Act and the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations.

How did Sebi discover the alleged scheme?

Sebi began its investigation after receiving three complaints in September and October 2023. The complaints alleged that certain entities were engaging in manipulative trading practices through televised stock recommendations.

After its preliminary findings, Sebi appointed an investigating authority. In June 2024 it secured search-and-seizure permission from a court and conducted operations at several premises linked to the accused. During these operations the regulator seized electronic devices, trading records and bank statements, and recorded sworn testimonies.

What kind of evidence did Sebi gather?

The order cites a range of evidence that supports Sebi’s allegations. Call data records showed frequent communication between Bhasin and RRB Master Securities’ dealers, especially around the timing of trades. WhatsApp chats indicated coordination between Bhasin, dealers and other intermediaries, including discussions about who would place trades in his absence.

Trade logs and order data revealed a consistent pattern. Shares were bought just ahead of public recommendations and sold shortly after. Screenshots of order confirmations were shared with Bhasin, showing real-time updates of the trades.

Statements under oath allegedly confirmed Bhasin’s role in directing trades, with his cousin Lalit Bhasin authorising him to operate accounts held by Venus and Gemini Portfolios.

Sebi also mapped a complex network of cross-shareholdings among Venus, Gemini, Leo, and HB Stockholdings—all connected through family and business ties.

How was the trading pattern executed?

The trades followed a repeatable structure. Stocks were accumulated in the accounts of Venus, Gemini, and HB Stockholdings via broker RRB Master Securities. Bhasin then issued buy recommendations for the same stocks on TV or Telegram. The media push led to short-lived rallies in price and volume, during which the entities sold the stocks, often within minutes. Bhasin allegedly remained in close contact with the dealers executing these trades.

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This pattern was documented across several stocks, including L&T Technology Services, Parag Milk Foods, InterGlobe Aviation (Indigo), SAIL, and Godrej Consumer Products.

Who are the other individuals and entities named in the order?

The order names 12 noticees: ‘guest expert’ Sanjiv Bhasin, ‘enablers’ Lalit Bhasin, Ashish Kapur, and RRB Master Securities, ‘dealers and insiders’ Rajiv Kapoor, Jagat Singh and Praveen Gupta, and ‘profit-making entities’ Venus Portfolios, Gemini Portfolios, HB Stockholdings, Leo Portfolios, and Babita Gupta (wife of Praveen Gupta).

Sebi alleges that these entities operated in coordination, with trades placed on Bhasin’s instructions and profits distributed across multiple accounts.

What action has Sebi taken?

It has restrained all 12 noticees from buying, selling or dealing in securities, directly or indirectly. Bank and demat accounts have been frozen to the extent of the allegedly illegal gains.

The order also serves as a show-cause notice, requiring the accused to explain why they should not face further action under the Sebi Act.

What are ‘unlawful gains’ and why were they impounded?

‘Unlawful gains’ are profits allegedly earned through deceptive or manipulative means. Sebi estimates that the accused made a total of ₹11.37 crore through trades placed just before and exited just after public stock recommendations.

The funds have been impounded to prevent them from being moved or hidden during the investigation. Sebi notes that impounding such gains is essential to protect investors and ensure the efficacy of its probe.

What happens next?

This is a preliminary order. The noticees have been given an opportunity to respond and defend themselves. Sebi will issue final directions after reviewing their replies and completing its investigation. In the meantime, the accused have the right to challenge the order before the Securities Appellate Tribunal (SAT).

Why does this case matter to investors?

Lawyers said the Sebi order reveals how retail investors can be exploited through coordinated, media-based manipulation. They explained that retail investors who acted on Bhasin's tips effectively served as exit liquidity.

“For investors, this is a wake-up call: always check if the advisor is Sebi-registered, scrutinise conflicts of interest, and avoid acting blindly on televised or social media recommendations," said Nirali Mehta, partner at Mindspright Legal.

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Mehta added that for the media, the case raises the bar on due diligence, and that platforms must now monitor expert disclosures, maintain records, and be alert to patterns suggesting misuse of the reach they provide.

Mehta also said that even though Sebi has not named IIFL Securities as a violator, the case has reputational and regulatory implications for the firm. “The firm has since clarified that Bhasin was not a director and had no board role. Still, Sebi’s findings may prompt closer scrutiny of how brokerages manage affiliations with public commentators and could lead to stricter internal controls on compliance, communication and conflict disclosures," she said.