No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Saturday, October 4, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Business

Sebi action on Jane Street highlights 3 aspects of market: Uday Kotak

by TheAdviserMagazine
3 months ago
in Business
Reading Time: 4 mins read
A A
Sebi action on Jane Street highlights 3 aspects of market: Uday Kotak
Share on FacebookShare on TwitterShare on LInkedIn


In the wake of market regulator Sebi’s sweeping crackdown on U.S. trading firm Jane Street, billionaire banker and founder of Kotak Mahindra Bank, Uday Kotak, has flagged three key concerns about the structure of India’s stock markets. He cautioned against the rising dominance of money power, the widening gap between single-stock and index derivatives liquidity, and business models that prioritise volumes over fundamentals.

“Recent stock market actions signify 3 aspects: money power, low liquidity in single stocks vs. index derivatives, exchange, broker business models linked to volume, less to fundamentals. Primary role of market is to promote capital formation, fair price discovery,” Kotak posted on X (formerly Twitter) on Saturday, July 5.

Recent stock market actions signify 3 aspects: money power, low liquidity in single stocks vs.index derivatives, exchange, broker business models linked to volume, less to fundamentals. Primary role of market is to promote capital formation, fair price discovery.

— Uday Kotak (@udaykotak) July 5, 2025

Kotak’s remarks come a day after the Securities and Exchange Board of India (Sebi) barred Jane Street Group and four affiliated entities from India’s securities market and ordered a freeze on Rs 4,840 crore in alleged unlawful gains.

A crackdown on expiry-day manipulation

Live Events

In a 105-page interim order issued Friday, Sebi accused Jane Street of deploying high-volume, cross-segment strategies to manipulate the Nifty and Bank Nifty indices, misleading retail traders and booking massive profits from index options. The regulator said the firm generated more than Rs 36,500 crore in net profits in India between January 2023 and March 2025, of which Rs 43,289 crore came from index options alone.The order said Jane Street used a strategy called “Intra-day Index Manipulation” on 15 of the 18 expiry days Sebi examined, which involved buying large quantities of index constituent stocks in the morning to artificially push up prices, while holding large bearish bets in the derivatives market. These trades were later reversed to drive down prices, profiting from the fall.On January 17, 2024, a day Sebi described in detail, the firm allegedly bought Rs 4,370 crore worth of Bank Nifty stocks in the morning, creating a misleading sense of strength. At the same time, it built Rs 32,114.96 crore worth of bearish options positions. By the afternoon, it reversed its cash market trades, pushing the index lower and booking Rs 734.93 crore in profit from derivatives, its biggest single-day gain in Indian markets.“The sales are aggressive, in a manner that pushes down prices in the component stocks and hence index. JS Group books losses in intraday cash/futures market trading,” the order said. “Profits in index options more than compensate for the JS Group’s losses.”

Also read | Rs 735 crore in 1 day! Jane Street’s most profitable day on Dalal Street was built on Nifty Bank’s fall

Repeated warnings, mounting concerns

Sebi said it first began reviewing Jane Street’s trades in April 2024, and issued a cautionary letter in February 2025 through the National Stock Exchange (NSE), warning the firm to avoid such patterns. Despite this, “JS Group continued with similar trades, in disregard of the caution letter from the Exchange… and JS Group’s own commitments,” the regulator noted.

On three other expiry days, the firm allegedly deployed an “Extended Marking the Close” strategy, placing large sell orders in the final minutes of trading to depress index levels, thereby benefiting short-call or long put positions.

Sebi wrote that the firm was “consistently running what appeared to be by far the largest risks in ‘cash equivalent’ terms in F&O particularly on index option expiry days,” and that other traders were “unaware of all this, and were hence enticed to deal at a time that the Nifty Bank itself was being artificially and temporarily propped up.”

Jane Street responds

Jane Street has denied any wrongdoing. “Jane Street disputes the findings of the SEBI interim order and will further engage with the regulator,” the firm said in an emailed response to Reuters. It added that it is committed to operating in compliance with regulations globally.

The company, which began its India operations in December 2020, has 21 days to respond to the Sebi order or challenge it before the Securities Appellate Tribunal.

As of Friday, four Jane Street-linked entities — JSI Investments Pvt Ltd, JSI2 Investments Pvt Ltd, Jane Street Singapore Pte Ltd, and Jane Street Asia Trading Ltd — have been prohibited from buying, selling, or dealing in Indian securities, and their accounts have been placed under a debit freeze.How Sebi’s crackdown on Jane Street unfolded: A 15-month trail of scrutiny and ignored warnings

Kotak’s post echoes broader concerns raised by Sebi in its investigation: that the market has tilted too far in favour of high-frequency, algorithmic strategies, while retail investors trade on distorted signals. The regulator pointed to a growing imbalance, where foreign and proprietary traders made over Rs 610 billion in FY24 through such strategies, nearly matching the losses absorbed by retail participants.



Source link

Tags: ActionaspectsHighlightsJaneKotakmarketSEBIStreetuday
ShareTweetShare
Previous Post

Who Really Invented Bitcoin? | Mises Institute

Next Post

Quant Mutual Fund raises mid and small cap allocation across equity and hybrid funds, sees buying opportunity in 7 sectors

Related Posts

edit post
US stocks: Dow, S&P 500 manage record closing highs; Nasdaq falls in volatile session

US stocks: Dow, S&P 500 manage record closing highs; Nasdaq falls in volatile session

by TheAdviserMagazine
October 3, 2025
0

NEW YORK: The S&P 500 eked out a record closing high in a volatile session Friday, with interest rate-cut expectations...

edit post
Trump orders Israel to stop bombing Gaza after Hamas partially accepts his peace plan

Trump orders Israel to stop bombing Gaza after Hamas partially accepts his peace plan

by TheAdviserMagazine
October 3, 2025
0

U.S. President Donald Trump on Friday ordered Israel to stop bombing the Gaza Strip after Hamas said it had accepted some elements...

edit post
Sean ‘Diddy’ Combs gets 4 years in prison and is fined half a million dollars for case involving sex workers, violence and ‘freak-offs’

Sean ‘Diddy’ Combs gets 4 years in prison and is fined half a million dollars for case involving sex workers, violence and ‘freak-offs’

by TheAdviserMagazine
October 3, 2025
0

Sean “Diddy” Combs was sentenced Friday to four years and two months in prison for transporting people across state lines for...

edit post
Lawsuit: Tesla design trapped a college student inside as it burst into flames

Lawsuit: Tesla design trapped a college student inside as it burst into flames

by TheAdviserMagazine
October 3, 2025
0

The parents of a college student killed in a Tesla crash say she was trapped in the car as it burst into...

edit post
Commerce Minister Piyush Goyal drives investment reforms on Singapore visit

Commerce Minister Piyush Goyal drives investment reforms on Singapore visit

by TheAdviserMagazine
October 3, 2025
0

New Delhi: India and Singapore have discussed strengthening trade and investment linkages, enhancing cooperation in innovation and digital connectivity, and...

edit post
Why Section 230, social media’s favorite American liability shield, may not protect Big Tech in the AI age

Why Section 230, social media’s favorite American liability shield, may not protect Big Tech in the AI age

by TheAdviserMagazine
October 3, 2025
0

Meta, the parent company of social media apps including Facebook and Instagram, is no stranger to scrutiny over how its...

Next Post
edit post
Quant Mutual Fund raises mid and small cap allocation across equity and hybrid funds, sees buying opportunity in 7 sectors

Quant Mutual Fund raises mid and small cap allocation across equity and hybrid funds, sees buying opportunity in 7 sectors

edit post
Amber International Raises .5M to Boost 0M Crypto Reserve

Amber International Raises $25.5M to Boost $100M Crypto Reserve

  • Trending
  • Comments
  • Latest
edit post
What Happens If a Spouse Dies Without a Will in North Carolina?

What Happens If a Spouse Dies Without a Will in North Carolina?

September 14, 2025
edit post
California May Reimplement Mask Mandates

California May Reimplement Mask Mandates

September 5, 2025
edit post
Does a Will Need to Be Notarized in North Carolina?

Does a Will Need to Be Notarized in North Carolina?

September 8, 2025
edit post
DACA recipients no longer eligible for Marketplace health insurance and subsidies

DACA recipients no longer eligible for Marketplace health insurance and subsidies

September 11, 2025
edit post
‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

September 9, 2025
edit post
Tips to Apply for Mental Health SSDI Without Therapy

Tips to Apply for Mental Health SSDI Without Therapy

September 19, 2025
edit post
Corn Rallies Back into Thursday’s Close

Corn Rallies Back into Thursday’s Close

0
edit post
U.S., Europe brands take on the Chinese consumer

U.S., Europe brands take on the Chinese consumer

0
edit post
Coffee Break: Vaccines Continued, Ancient Art, Renewables, Ignis Fatuus Explained, Good Sleep, and Jane Goodall

Coffee Break: Vaccines Continued, Ancient Art, Renewables, Ignis Fatuus Explained, Good Sleep, and Jane Goodall

0
edit post
Bitcoin Approaches 4K Peak as U.S. Shutdown Fuels Crypto Surge

Bitcoin Approaches $124K Peak as U.S. Shutdown Fuels Crypto Surge

0
edit post
Whose Investment Are You?

Whose Investment Are You?

0
edit post
US stocks: Dow, S&P 500 manage record closing highs; Nasdaq falls in volatile session

US stocks: Dow, S&P 500 manage record closing highs; Nasdaq falls in volatile session

0
edit post
US stocks: Dow, S&P 500 manage record closing highs; Nasdaq falls in volatile session

US stocks: Dow, S&P 500 manage record closing highs; Nasdaq falls in volatile session

October 3, 2025
edit post
U.S., Europe brands take on the Chinese consumer

U.S., Europe brands take on the Chinese consumer

October 3, 2025
edit post
Bitcoin Capital Flow Must Enter The Network Before Global Dominance — Here’s What Will Happen

Bitcoin Capital Flow Must Enter The Network Before Global Dominance — Here’s What Will Happen

October 3, 2025
edit post
Trump orders Israel to stop bombing Gaza after Hamas partially accepts his peace plan

Trump orders Israel to stop bombing Gaza after Hamas partially accepts his peace plan

October 3, 2025
edit post
Whose Investment Are You?

Whose Investment Are You?

October 3, 2025
edit post
Sean ‘Diddy’ Combs gets 4 years in prison and is fined half a million dollars for case involving sex workers, violence and ‘freak-offs’

Sean ‘Diddy’ Combs gets 4 years in prison and is fined half a million dollars for case involving sex workers, violence and ‘freak-offs’

October 3, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • US stocks: Dow, S&P 500 manage record closing highs; Nasdaq falls in volatile session
  • U.S., Europe brands take on the Chinese consumer
  • Bitcoin Capital Flow Must Enter The Network Before Global Dominance — Here’s What Will Happen
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.