SEBI VS JANE STREET WHETHER JANE STREET MANIPULATED STOCK INDICES?

 SEBI VS JANE STREET  

 

WHETHER JANE STREET MANIPULATED STOCK INDICES? 

 

SEBI recent investigation found that Jane Street manipulated stock indices through positions taken in derivatives. SEBI barred Jane Street from participating in the local market until further orders and seized $567 million of its funds. 

 

SEBI’S ORDER 

In its most stringent action ever against a foreign trading firm in the country,  SEBI in an interim order dated July 3 said that Jane Street and its related entities (JS Group) would no longer be able to participate in the domestic Indian securities market. 

 MANIPULATIVE STRATEGIES 

SEBI’s order exposes  some of the Jane Street’s trading strategies were manipulative and resulting in  losses for retail investors on the other side of the trades. 

RESTRAINT ORDER   

JS Group entities are restrained from accessing the securities market and are further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly in India according to SEBI. 

 

LIQUIDITY EFFECTS:  

Though Jane Street was a major derivatives participant, analysts suggest the broader market won’t see volatility or liquidity decline due to this action. 

SEBI VS JANE STREET 

SEBI’s decisive action in SEBI vs Jane Street addresses one of the biggest alleged foreign-led manipulations in India’s financial history. The case underscores the maturity and assertiveness of Indian market regulation, especially in derivatives. 

JANE STREET’S RESPONSE 

The Jane Street strongly disputes SEBI's findings, asserting commitment to regulatory compliance. It plans to: 

• Reply to SEBI within the 21-day window provided by the order. 

• Potentially challenge the interim order in the Securities Appellate Tribunal 

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R V SECKAR FCS,LLB