Get to Know Sanjiv Bhasin, the Investment ‘Expert’ Who Promoted Investments on TV and Shares Privately

Sanjiv Bhasin, a prominent figure in the investment world and former director at IIFL Securities, has found himself at the center of a controversy with the Securities and Exchange Board of India (SEBI) cracking down on him and 11 others for alleged market manipulation. According to SEBI, Bhasin used his influence on popular TV channels such as CNBC Awaaz, Zee Business, and Telegram to promote certain stocks to the public while secretly holding positions in those same stocks. By doing so, he was able to drive up the prices of those shares and make a profit by selling them after the expected surge.

SEBI’s investigation revealed that Bhasin’s scheme involved front-running trades, a practice where one buys shares before recommending them to the public and then selling them once the prices increase. The regulatory body calculated that Bhasin made illicit profits totaling ₹11.37 crore through this scheme, spanning a period from January 2020 to June 2024, executed through various entities like Venus Portfolios, Gemini Portfolios, and HB Stockholdings.

For instance, in January 2022, Bhasin suggested investing in L&T Technology Services on Zee Business after purchasing 3,800 shares on the same day at ₹5,641.8 per share. Shortly after the broadcast, he sold those shares for ₹5,677.79 each, making a profit of ₹1.36 lakh. Similarly, in February 2024, he hyped up Parag Milk Foods as a top pick, concealing the fact that he had already bought 51,500 shares at a lower price and sold them later for a substantial profit.

SEBI’s order also pointed out Bhasin’s close ties with dealers from RRB Master Securities, a company run by his cousin Lalit Bhasin and brother-in-law Ashish Kapur. Transcripts of phone calls and trade logs supported the claim that Bhasin would provide exact trading instructions to his associates just before his appearances on TV channels.

In response to the SEBI order, Bhasin and the 11 other accused have been barred from trading securities, pending further investigation. Despite being a former director at IIFL Securities, the company clarified that Bhasin was a contractual consultant and not part of its board or group affiliates. His contract was terminated early due to health reasons, and the company claimed to have no prior knowledge of SEBI’s actions at the time.

Legal experts anticipate that Bhasin may challenge SEBI’s decision at the Securities Appellate Tribunal (SAT), arguing that his TV appearances were merely market commentary and not formal investment advice. However, the overwhelming evidence, including trade records, call transcripts, and WhatsApp messages, may weaken his defense.

The case involving Sanjiv Bhasin serves as a significant reminder of SEBI’s increased focus on regulating public figures who influence the stock market. It underscores the message that abusing one’s visibility for personal gain can be considered market manipulation. Looking ahead, stricter regulations on financial commentary in media and social platforms are expected to emerge, as SEBI aims to hold all market influencers accountable for their actions.