INSUBCONTINENT EXCLUSIVE:
Jane Street Group held the largest positions in Nifty Bank options among all market participants, the Securities and Exchange Board of India
(SEBI) said on Friday, as it defended its sweeping action to bar the U.S
quant trading firm and related entities from accessing Indian capital markets.Responding to market concerns following its interim order,
Street Group engaged in systematic manipulation of the Nifty Bank and Nifty 50 indices, making unlawful profits in the process
The regulator ordered the impounding of Rs 4,840 crore in alleged gains and directed banks to freeze any debit transactions from the
Rs 36,500 crore in net profits between January 2023 and March 2025 from its Indian trades, including Rs 43,289 crore from index options
On the put side, the resulting net delta exposure was even more bearish, totalling negative Rs 5,084 crore.Net delta reflects the
equities, futures, and options, primarily on expiry days, to profit from its massive derivatives positions.On January 17, 2024, for example,
the firm allegedly bought Rs 4,370 crore worth of Nifty Bank constituents in the morning to artificially boost the index
It later reversed those trades while holding larger bearish positions in options, earning Rs 734.93 crore in a single day, SEBI said.Jane
Group as prima facie being manipulative, is the intensity and sheer scale of their intervention in the underlying component stock and
traders, who typically rely on index levels to make trading decisions
trading partner, Nuvama Wealth
Street Singapore, and Jane Street Asia Trading, are under debit freeze, pending further proceedings.Also read | Sebi bars U.S
trading firm Jane Street from Indian markets, orders Rs 4,840 crore freeze over alleged Nifty manipulation(Disclaimer: Recommendations,
suggestions, views and opinions given by the experts are their own
These do not represent the views of the Economic Times)
