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SEBI bans Sanjiv Bhasin for fraud; plans big changes

From banning a former IIFL executive to easing IPO rules, SEBI is flexing its muscle

From banning a former IIFL executive to easing IPO rules, SEBI is flexing its muscleAdobe Stock

SEBI just gave investors a lot to think about. On one hand, it barred former IIFL Securities executive Sanjiv Bhasin for allegedly running a pump-and-dump scheme. On the other hand, it’s holding a key board meeting to shake up IPO, startup, and PSU listing norms.

Translation? The regulator isn’t just watching from the sidelines – it’s actively rewriting the playbook.

First, the crackdown

In a big move, SEBI has banned Sanjiv Bhasin from accessing the markets. The charge? Promoting certain stocks on business channels and Telegram groups after buying them, then dumping those shares once the price spiked.

It’s a textbook case of market manipulation—except this time, the textbook is being thrown at the manipulator.

Now, the bigger picture

Alongside this enforcement action, SEBI’s board is meeting today to discuss some major rule changes. Here’s what’s on the table:

Proposal Why it matters
Letting startup founders keep ESOPs post IPO Encourages long-term skin in the game
Easier delisting for PSUs Could speed up the government’s divestment agenda
Stricter IPO cooling-off period Curb IPO frenzy and improve quality
Easier FPI rules in bonds Aims to attract more global capital
Simplified QIP norms Helps companies raise money faster

SEBI is essentially trying to strike a balance: Clean up shady practices while also making it easier for serious players to operate.

What else is happening?

  • Tech check for UPI fraud: From October, SEBI is rolling out verified UPI IDs and a new “SEBI Check” tool to stop rising broker scams.
  • Derivative expiry reshuffle: Starting September, NSE and BSE will swap expiry days for contracts to reduce volatility and smoothen operations.

The final word

Today’s moves show that SEBI isn’t just talking tough, it’s walking the walk. From policing individual bad actors to pushing systemic reform, the regulator is tightening the screws and greasing the wheels – all at once.

For serious investors, that’s a good sign.

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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.

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