“Recent stock market actions suggest 3 aspects: money power, low fluid in single stocks vs index derivatives, exchange, broker business models linked to Dells Volume, less than fundamentals.
The latest stock market actions suggest 3 aspects: money power, low fluid in single stocks. The primary role of the market is to promote capital formation, reasonable price discovery.
– Uday Kotak (@udaykotak) July 5, 2025
Link to Post: https://x.com/udaykotak/status/1941359058482774409?t=FMMOSN5MNZW4MBG1LTWXQ&S=08
The Securities and Exchange Board India F India (SEBI) has commented on the Jane Street Group and four affiliated organizations from the Securities Market in India, and in the alleged illegal benefit of Rs. It has been ordered to stabilize at Rs 4,840 crore.
Rigid on the finish-day manipulation
In a 105-page interim order issued on Friday, Sebi accused the Nifty and Nifty indicators on Jane Street, misleading retail traders and booking high-volume, cross-segment strategies for booking large profits from index options. The regulator said that the Pay FIRM had produced more than Rs 36,500 1 crore in net profit in India between 2023 and March 2025, out of which Rs 43,89 crore came from sequence options.
The order states that Jane Street Sebi used a strategy called “Intra-Day Index Manipulation” on 15 of the 18 completion of 18 completion, which included a large number of sequence components in the morning to increase the prices of artificially, when catching large bearish bets in the derivatives market. These businesses were later reversed to reduce profits from fall.
On January 17, 2024, Sebi described in detail, Pay FirM bought bank Nifty stocks of Rs 4,370 crore in the morning, creating a misleading spirit of power. At the same time, he made a position of bearish options worth Rs 32,114.96 crore. By noon, he reversed his cash market trade, put the index lower pressure, and its largest single-day gain in Indian markets, from derivatives to Rs. 734.93 crore booked.
“Sales are aggressive, in a way that reduces prices in component stocks and therefore indexes. JS Group Books Increde Cash/Futures Damages Market Trading,” the order said. “Profit in index options than compensating for the loss of JS group.”
Also read | In 1 day, Rs. 735 crores! Jane Street’s most profitable day on Dalal Street was built on the fall of Nifty Bank
Frequent warnings, growing concerns
Sebi said it started reviewing Jane Street’s trade in April 2024, and issued a precautionary letter in February 2025 through the National Stock Exchange (NSE), warning Pay FIRM to avoid such examples. Despite this, “the JS group continued with the same businesses,” the JS group, in disregarding the exchange of exchanges and its commitments to the JS group, “the regulator noted.
In the other three expiration days, Pay Firm allegedly deployed a “elaborate marked” strategy, ordering large selling in the final minute of the trade to depress the sequence levels, benefiting the short-call or long-term situation.
Sebi writes that the biggest risks to the ‘cash equivalent’ conditions in the F&O, especially on the end of the end of the index option “, were constantly going on, and other traders were unaware of all of this, and therefore tempted to deal at that time that the Nifty Bank itself was moving artificially and temporarily. “
Jane Street responds
Jane Street has denied any malpractice. “Jane Street disputes Sebi’s interim order findings and will join the regulator more,” Pay FIRM said in a response to the Reuters. It added that it is committed to complying with the rules globally.
The company, which started India’s operations in December 2020, has 21 days to respond to the SEBI order or challenge it before the Securities Appeal Tribunal.
By Friday, Jane Street-Linked Entrance-JSI Investments PVT Limited, JSI 2 Investments Pvt.
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Kotak’s post echoes widespread concerns raised by Sebi in its investigation: that the market is tilted too far in favor of high-frequency, algorithmic strategies, while retail investors trade on deformed signals. The regulator pointed to the growing imbalance, where foreign and owned traders made more than Rs 610 billion in the fiscal year through such strategies, matching the loss absorbed by almost retail participants.
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