SEBI continues Jane Street Probe, more indexes and patterns to investigate: Source
The Securities and Exchange Commission, the Indian market regulator, will continue to investigate in Jane Street affairs and offer other derivative contracts (F&O) (F&O) – as well as the patterns to be explored, Zee Business learned from the source. The update was conducted at a time when capital market regulators seized allegedly illegal gains from deductions allegedly manipulated through stocks in the F&O position as the capital market regulator was headquartered in the U.S.
This marks one of the toughest actions regulators have made against a foreign trading company in the country.
Sebi said in an interim order dated July 3 that Jane Street and its related entities will no longer be able to participate in the domestic securities market.
According to the order, some of Jane Street’s trading strategies were found to be manipulative, causing losses to retail investors. Related entities – provided to JS Group – are prohibited from the securities market in the country. According to SEBI, these entities will no longer be able to purchase, sell or trade securities directly or indefinitely.
It said the ban will remain in place until the final order is issued after the investigation is completed.
Sources said the order was not a Show Cause Notice (SCN) and the investigation into the matter will continue.
SEBI investigates details of derivatives transactions in Jianjie
As of the deadline, SEBI reportedly found Prima Facie Facie manipulation in Nifty bank contract for 18 days, while the Nifty50 contract is three days. According to sources, the investigation period is from January 2023 to March 2025.
Each algorithm user is responsible for the output of its algorithm. In addition, law enforcement actions are unlikely to have a significant impact on the market and meet delta-based restrictions, they said.
Sources point out that better enforcement of existing rules is essential, but more rules cannot compensate for poor enforcement.
They said that in the second phase of the consultation, SEBI withdrew its proposal for intraday restrictions.
“We believe that goals can be achieved through improved surveillance and enforcement… The order clearly reflects this belief. We will continue to monitor the Indian catering market from the perspective of investor protection, market stability and capital formation,” the source said.
Recently, index options trading on retail participation expiration dates has declined. Sources pointed out that, however, nearly 90% of retail investors continue to lose money.
