SEBI Permits Sanjiv Bhasin to Resume Trading After Rs 1 Crore Deposit, Following SAT Order Decision

sebi De-Freezes Sanjiv Bhasin‘s Accounts Following SAT Directive

Mumbai,August 20,2025 – Market regulator Securities and Exchange Board of India (Sebi) has directed exchanges to restore trading and demat accounts held by Sanjiv Bhasin,the former director of IIFL,after he fulfilled the requirements set by the Securities Appellate Tribunal (SAT). The action follows Bhasin’s deposit of Rs 1 crore with Sebi, in accordance with the SAT’s order.

The SAT’s directive, issued on August 1, 2025, stemmed from an appeal filed by Bhasin against a Sebi interim order that temporarily barred him from participating in capital markets due to alleged stock manipulation. In the appeal, Bhasin contested the scale of the alleged illicit gains, stating that even under Sebi’s calculations, the maximum profit amounted to Rs 62.75 lakhs.He requested the appellate tribunal to stay the direction for disgorgement and allow him to engage with the regulator to participate in the proceedings, proposing a minimum deposit amount.

Market Manipulation Allegations

Sebi initiated an investigation between January 1, 2020, and June 12, 2024, prompted by three complaints received in September-October 2023. The investigation highlighted a pattern where Bhasin, leveraging his role as a director at IIFL and appearing as a guest expert on media channels, allegedly manipulated stock prices through strategic recommendations.

The regulator found that Bhasin routinely established positions – primarily buying – in entities like Venus Portfolios Private Limited, Gemini Portfolios Private Limited, and HB Stockholdings Limited before offering stock recommendations on news channels and IIFL’s Telegram channel. These recommendations, backed by his substantial viewership, demonstrably impacted stock prices and trading volume.

Afterward,Bhasin woudl sell his securities,capitalizing on the artificially inflated prices and generating substantial profits. Sebi’s interim order, passed by Whole Time Member Kamlesh C. Varshney, identified unlawful gains amounting to Rs 11.37 crore, sparking the legal challenge which culminated in the SAT’s directive.

What specific allegations led SEBI to initially ban Sanjiv Bhasin from the securities market?

Understanding the Sanjiv Bhasin Trading Ban & Recent Developments

Sanjiv Bhasin, a well-known market expert and Director at IIFL Securities, has been granted permission by the Securities and Exchange Board of India (SEBI) to resume trading activities. This follows a recent order from the Securities Appellate Tribunal (SAT) and a subsequent deposit of Rs 1 crore with SEBI. The initial ban stemmed from alleged violations of SEBI’s Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market Regulations. This article details the timeline of events, the SAT’s decision, SEBI’s response, and the implications for investors and the broader market. Key terms related to this event include trading ban, SEBI order, SAT ruling, market manipulation, and regulatory compliance.

The Initial SEBI Order: Allegations and Restrictions

In November 2023, SEBI issued an interim order against Sanjiv bhasin, prohibiting him from accessing the securities market. The allegations centered around potential unfair trade practices and market manipulation concerning stocks of certain companies. Specifically, SEBI alleged that Bhasin was passing on unpublished price-sensitive data (UPSI) to others, leading to potential insider trading.

The restrictions imposed included:

Prohibition from buying, selling, or dealing in securities directly or indirectly.

restriction from accessing the securities market through any associate.

Freezing of demat and trading accounts.

Bar from being a director of any listed company.

This initial action sent ripples through the financial markets, given Bhasin’s prominent position as a market commentator and analyst. insider trading regulations and market integrity were central to SEBI’s concerns.

SAT’s Intervention and the Reversal of Restrictions

Sanjiv Bhasin challenged SEBI’s interim order before the Securities Appellate Tribunal (SAT). SAT, acting as an appellate authority, reviewed the case and, in August 2025, issued a significant order. SAT directed Bhasin to deposit Rs 1 crore with SEBI as a condition for resuming trading.

SAT’s decision wasn’t a complete exoneration. The tribunal acknowledged SEBI’s concerns but found the interim order overly restrictive, particularly given the lack of conclusive evidence at that stage. The deposit was essentially a safeguard, ensuring Bhasin’s commitment to cooperate with the ongoing investigation. Securities law, appellate jurisdiction, and due process were key considerations in SAT’s ruling.

SEBI’s Response and Permission to Trade

Following the SAT order and the subsequent deposit of Rs 1 crore by Sanjiv Bhasin,SEBI has now permitted him to resume trading activities. This decision signifies SEBI’s adherence to the SAT’s directive and allows Bhasin to participate in the market while the investigation continues.

It’s crucial to understand that this permission is conditional. The ongoing investigation remains active, and SEBI retains the right to take further action if new evidence emerges. Regulatory actions, investigative powers, and market surveillance remain critical aspects of SEBI’s role.

Implications for Investors and Market Participants

The Sanjiv Bhasin case highlights several crucial points for investors and market participants:

Importance of Regulatory Compliance: The case underscores the critical need for all market participants to adhere to SEBI’s regulations regarding insider trading and unfair trade practices.

Market Integrity: Maintaining market integrity is paramount. SEBI’s actions demonstrate its commitment to ensuring a fair and transparent trading environment.

Due Process: The SAT’s intervention highlights the importance of due process and the right to appeal regulatory decisions.

Impact of Market Sentiment: Events like these can influence market sentiment and investor confidence. The initial ban and subsequent reversal both had noticeable effects on market reactions.

Understanding UPSI and Insider Trading

unpublished Price Sensitive Information (UPSI) is information that is not available to the public and could materially affect the price of a security. Examples include:

Upcoming mergers and acquisitions.

Significant earnings announcements.

Major policy changes.

Board decisions.

Trading on UPSI is illegal and constitutes insider trading. Penalties for insider trading can be severe, including monetary fines and imprisonment. Financial regulations and investor protection are central to preventing such activities.

IIFL Securities’ Role and Response

IIFL Securities, where Sanjiv Bhasin serves as a Director, has cooperated with SEBI throughout the investigation.The company has reiterated its commitment to ethical conduct and regulatory compliance. The incident prompted a review of internal controls and compliance procedures at IIFL Securities to prevent similar issues in the future. Corporate governance and risk management are crucial in maintaining investor trust.

Future Outlook and Ongoing Investigation

The investigation into the allegations against sanjiv Bhasin is still ongoing. SEBI will continue to gather evidence and analyze trading patterns to determine whether any violations occurred. the outcome of the investigation could have significant implications for Bhasin and perhaps other individuals involved. Legal proceedings and regulatory enforcement will continue to shape the narrative. Investors shoudl stay informed about developments in this case and remain vigilant about potential risks in the market.