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Heat the oil in a large saucepan over medium heat. Add the onion and capsicum and cook, stirring, for 10 minutes or until onion softens slightly. Add the garlic and cook, stirring, for 1 minute or until aromatic.
Add the tomato, fish stock, saffron, bay leaf and lemon rind. Bring to the boil. Reduce heat to low and simmer, covered, for 15 minutes or until soup thickens slightly.
Add the fish and cook, uncovered, for 5 minutes or until fish is just cooked.
Ladle the soup among serving bowls. Sprinkle with basil and season with pepper. Serve immediately.