Market regulator Securities and Exchange Board of India (Sebi) may widen its probe into Jane Street by examining trades across multiple indices and exchanges, ET Now reported on Friday, citing sources.
The report further said that while Sebis investigation into Jane Street is extensive and may take time to conclude, it is unlikely to trigger any major market-wide impact.Retail participation in the F&O segment has moderated following Sebis recent measures to curb speculative trading.
However, nearly 90% of investors still continue to incur losses, the report said.Read More: Explained: What is Jane Street and how it made Rs 36,500 crore profit by gaming Dalal StreetOn Thursday, the market watchdog issued a 105-page order imposing comprehensive interim restrictions on Jane Street pending a detailed investigation.
Jane Street entities are completely restrained from accessing securities markets and prohibited from buying, selling, or dealing in securities directly or indirectly.Live EventsThe regulator also ordered impounding of Rs 4,843.57 crore in unlawful gains, requiring Jane Street to deposit this amount in an escrow account with a lien in favor of SEBI.
All bank accounts, demat accounts, and custodial accounts are frozen, with no debits allowed without Sebi permission (though credits can be accepted).The entities also cannot dispose of or alienate any assets in India until the unlawful gains are deposited in the escrow account.Sebi has given Jane Street 21 days to file objections and it can request a personal hearing.
The interim restrictions remain in force until further orders from SEBI.Meanwhile, the stock exchanges have been directed to closely monitor any future dealings by Jane Street to ensure they don't engage in manipulative activities using the patterns identified in the order.Also Read: Jane Street Fallout: Zerodha's Nithin Kamath flags risk to brokers and stock exchangesJane Street is committed to operating in compliance with all regulations in the regions we operate around the world, the firm said in an emailed response to Reuters.
Jane Street disputes the findings of the SEBI interim order and will further engage with the regulator.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.
These do not represent the views of Economic Times)