INSUBCONTINENT EXCLUSIVE:
Securities and Exchange Board of India (Sebi) will continue tightening surveillance of the derivatives market but is not considering curbing
weekly index expiries at this stage, Chairman Tuhin Kanta Pandey said on Monday, after the regulator last week barred U.S.-based quant firm
Jane Street from local markets for alleged manipulation of index levels.Pandey said, "Sebi is focused on retail investor protection" and
surveillance is tightened on both Sebi & exchange level, adding that the regulator was "working toward upgrading its surveillance tools,"
according to agencies.The Sebi chief's remarks come in the wake of a sweeping interim order by Sebi issued on Friday, which accused Jane
traders and booking gains worth Rs 4,840 crore.While that action has triggered speculation about possible curbs on expiry-day trading in
"Action already taken on weekly expiry..
firm Jane Street and four affiliates from accessing Indian markets on July 3 and ordered the impounding of Rs 4,840 crore in alleged
93% of retail traders incur losses
The case against Jane Street, one of the most active global trading firms in India, has become a flashpoint in that debate.In the July 3
order, Sebi accused the firm of engineering price moves in over 40 Nifty 50 and Bank Nifty constituent stocks on expiry days, pushing up the
index in the morning through aggressive cash and futures buying, then reversing those trades while holding large bearish options positions
from buying, selling, or dealing in securities, directly or indirectly
total profits between January 2023 and March 2025, of which Rs 43,289 crore came from index options
These were partly offset by Rs 7,687 crore in losses across cash and futures trades.Limited broader fallout expectedAsked whether Sebi is
probing similar conduct by other high-frequency trading (HFT) or proprietary firms, Pandey played down concerns of wider malpractice
market behaviour on expiry days and has convened fresh analysis efforts
markets.Also read | Jane Street clampdown raises big questions for Sebi: Can the regulator stop another derivatives fraud?(Disclaimer:
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