INSUBCONTINENT EXCLUSIVE:
Veteran investor Shankar Sharma has raised sharp concerns about the function of Indian stock market in the recent Jane Street controversy,
recommending that earnings intentions may have avoided timely action against the international trading firm.In a post on X (formerly
Twitter), Sharma questioned why the exchanges did not act earlier against Jane Street, despite the fact that they are amongst the first to
receive trading alerts.How come the stock exchanges never ever sanctioned Jane Street? They are the extremely first to get such signals,
How can they sanction JS when it drives F&O volume enormously, hence SE profits?Exchanges are not meant to chase profitsSharma, who has
actually typically criticised the structure of listed exchanges, restored his require a rethink of their function
According to him, exchanges function as quasi-regulators and need to run like utilities not profit-driven corporations.I have long held that
exchanges must NEVER get noted
Earnings motive creates limitless conflict of interest, he composed
SEs should be an utility, not for-profits
Nahi to, suffer all this hanky-panky
Live EventsSebi vs Jane StreetOn Friday, the Securities and Exchange Board of India (Sebi) passed an interim order implicating Jane Street,
a U.S.-based exclusive trading company, of using high-frequency trading techniques to control index levels such as the Nifty 50 and Bank
Nifty.Sebi alleged that Jane Street pushed up index worths in the morning by purchasing stocks and futures, only to reverse those trades
later in the day, thereby affecting expiry-day prices of choices in its favour
The regulator said this permitted the company to create earnings of over Rs 43,000 crore in index alternatives, while deliberately incurring
losses in the futures and equities segments.Sebi has actually frozen Rs 4,843 crore in what it referred to as illegal gains and barred Jane
Street and its entities from accessing the Indian securities market until additional notice.Stock exchanges under scrutinIn its order, Sebi
pointed out that stock market had released caution letters to Jane Street in the past
It remains uncertain what even more actions, if any, the exchanges took in the past Sebi stepped in with enforcement action.Sharmas remarks
have drawn attention to this concern, particularly considering that one of the two significant exchangesBSEis a listed entity, while
National Stock Exchange (NSE) remains unlisted however operates as a for-profit organisation.The matter has actually sparked a broader
dispute about the role of exchanges in keeping market stability, especially when advanced trading methods and high-volume gamers are
involved.(Disclaimer: Recommendations, ideas, views, and opinions given by the professionals are their own
These do not represent the views of TheIndianSubcontinent)
