Context:
Sanjiv Bhasin, former Director at IIFL Securities and a well-known market commentator, has filed an appeal with the Securities Appellate Tribunal (SAT) challenging a SEBI order dated 17 June 2025, which barred him from securities trading for alleged market manipulation and front-running.
SEBI Allegations
- Nature of Allegations: SEBI alleged that Bhasin and 11 others:
- Engaged in coordinated fraudulent trading.
- Placed trades prior to making stock recommendations on TV and social media.
- Benefited from unlawful gains by influencing prices.
- Charges Included: Front-running and manipulation under PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations.
- Actions Taken by SEBI:
- Restraining Bhasin and others from accessing the securities market.
- Freezing of bank and demat accounts.
- Accused of trades executed before or simultaneously with public recommendations.
What is Front-Running?
Front-running refers to trading a stock based on prior knowledge of a large upcoming order likely to influence its price — an illegal practice under securities laws.
Securities Appellate Tribunal (SAT)
The Securities Appellate Tribunal (SAT) is a statutory body in India established to hear appeals against orders passed by the Securities and Exchange Board of India (SEBI), the Pension Fund Regulatory and Development Authority (PFRDA), and the Insurance Regulatory and Development Authority of India (IRDAI). It acts as a specialized quasi-judicial body to ensure fairness and transparency in the securities market.
