INSUBCONTINENT EXCLUSIVE:
according to Zerodha Founder and CEO Nithin Kamath
Highlighting the broader impact, Kamath warned that if proprietary trading firms like Jane Street, which account for nearly 50% of options
Prop trading firms like Jane Street account for nearly 50% of options trading volumes
The shocking part? They kept at it even after receiving warnings from the exchanges
Maybe this is what happens when you're used to the lenient U.S
Think about the structure of U.S
markets: dark pools, payment for order flow, and other loopholes that allow hedge funds to make billions off retail investors
None of these practices would be allowed in India, thanks to our regulators," the tweet said further."The next few days will be telling
F&O volumes might reveal just how reliant we are on these prop giants
sophisticated trading firms, allegedly pulled off a Rs 36,500 crore market scam, making a whopping Rs 43,289 crore in options profits while
deliberately losing Rs 7,208 crore in futures and equities.The market watchdog in a 105 page order issued on Thursday imposed comprehensive
interim restrictions on Jane Street pending detailed investigation
Jane Street entities are completely restrained from accessing securities markets and prohibited from buying, selling, or dealing in
securities directly or indirectly.The 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.Read
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