SEBI Bars IIFL Securities Director Sanjiv Bhasin for Front-Running

Quick Summary

• SEBI banned Sanjiv Bhasin, Director of IIFL Securities, and others from securities trading for engaging in front running.
• Investigations revealed Bhasin purchased stocks before publicly recommending them on media platforms and then sold them for profit after prices rose due to his recommendations.
• Stocks involved included major companies like L&T Technology Services, Parag Milk Foods, Interglobe aviation, Steel Authority of India Ltd., and godrej RCP.
• ₹11.37 crore was gained through unlawful trades based on stock recommendations.
• SEBI served notices to Bhasin, along with Lalit Bhasin, Ashish Kapur (the “enablers”), RRB Holdings, and other entities labeled “profit makers.”
• In addition to the trading ban and disgorgement order (₹11.37 crore), penalties were imposed while restricting bank payments without SEBIS approval.
• The noticees have been given 21 days to respond to the regulator’s interim order.

Indian Opinion Analysis
SEBI’s action against Sanjiv Bhasin signifies a pivotal moment in regulatory oversight within India’s financial markets. By penalizing a high-profile research analyst for front running-a practice previously limited to other market participants-the watchdog underscores its intention to enforce fairness and transparency across all levels of trading activity. This could have implications for ethical standards required from influential figures such as media analysts who directly impact public stock investments.Moreover, focusing on prominent companies highlights how misuse can affect broader market confidence. vigilance by regulators like SEBI can perhaps bolster investor trust but raises challenges about ensuring equitable enforcement without stifling legitimate advisory functions.read More