Sebi opens 6-month special window for investors to re-lodge rejected physical share transfer deeds
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In a major relief for investors who missed the deadline to re-lodge transfer deeds for physical shares , the Securities and Exchange Board of India (Sebi) has announced a six-month special window from July 7, 2025, to January 6, 2026, allowing shareholders to re-lodge transfer documents that were lodged before April 1, 2019, but rejected or returned due to deficiencies.The move comes after SEBI received numerous representations from investors, Registrars and Transfer Agents (RTAs), and listed companies highlighting that many shareholders were unable to meet the earlier cut-off date of March 31, 2021.Following consultations with a Panel of Experts, Sebi decided to offer another opportunity to protect investors' rights and facilitate ease of investing.During this special window, all re-lodged securities — including pending requests with companies or RTAs — must be issued only in dematerialised form. Listed companies and RTAs are required to ensure proper processing of these transfer-cum-demat requests in compliance with Sebi regulations.Additionally, SEBI has directed listed companies, RTAs, and stock exchanges to actively publicise the special window every two months across print and social media to reach affected investors.Dedicated teams must be set up by RTAs and listed firms to handle these requests, and detailed monthly reports covering publicity efforts and re-lodged shares must be submitted to SEBI.This initiative, issued under the powers granted to SEBI by the SEBI Act and relevant regulations, aims to protect investors' interests and ensure the orderly transition from physical to dematerialized securities, furthering the regulator's efforts to modernize and secure India's capital markets.In another news, the market regulator mandated the use of a Common Contract Note (CCN) with a Single Volume Weighted Average Price (VWAP) effective June 27, 2025. This move comes with a view to simplify post-trade processes and boost ease of doing business for institutional investors.Until now, institutional investors and market participants were burdened with separate trade confirmations from each exchange, leading to cumbersome reconciliation, settlement complexities, and increased compliance headaches.Responding to long-standing demands from industry stakeholders, regulators, in collaboration with exchanges and clearing corporations, developed a single consolidated contract note mechanism with a uniform VWAP.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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India Gazette
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News18
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After Rs 36,500 Cr Jane Street Scam Saga, Can SEBI Plug The Gaps In Derivatives Market?
Jane Street, a US-based algo trading company, was alleged by the Securities Exchange Board of India (SEBI) in its 115-page report for market manipulation and misleading investors. The company was alleged to make profits in billions through unethical strategies. SEBI has now barred Jane Street from accessing the Indian stock market and ordered to pay Rs 4,840 crore in alleged unlawful gains. Gaurav Goel, Founder and Director at Fynocrat Technologies told The Economic Times that the damage isn't just financial – it erodes faith in the system. 'This kind of manipulation, if proven true, not only distorts the market but also harms retail investors who trade with trust and limited capital," he added. Goel told ET that several regulatory gaps need to be filled in. He said 'manipulators often trade in both stock and options markets to create fake price moves. Sebi should build systems that track both markets together and raise alerts when something looks suspicious." Dinesh Thakkar, Managing Director, Chairman and the Founder of Angel One while sharing his PoV on the future of India's proprietary trading, said India's market opportunity is ????????????????????????????????????????, ???????????? ???????????????????????????????? ???????????? ???????????????????????????????????? ???????????? ???????????????????????????????????? ???????? ???????????? ???????????? ????????????????. He said that India's macroeconomic foundation remains solid. ???????????????????????????????????? ????????????????????????????????????, ???????????????????????????????????????? ????????????????????????????????????????????????, ???????????????????????? ???????????????????????????????? ????????????????????????????????????????????, ???????????????????????? ???????????????????????????????? ???????????????????????????? ???????????????????? ???????????? ???????????? ???????????????????????????????????? continue to support high liquidity and sustained market participation Siddhart Bhamre, head of institutional research at Asit C Mehta said Jane Street is one of the largest traders contributing to India markets. He added that when big players are banned for wrongdoing, others become cautious and reduce activity, leading to lower volumes. The impact may extend beyond SEBI's jurisdiction, with tax authorities expected to examine Jane Street's structure under India's General Anti-Avoidance Rules (GAAR). A large chunk of profits was reportedly routed through its Singapore-based FPI arm, leveraging treaty-based tax benefits, while Indian entities allegedly carried out intraday trades—something FPIs are not allowed to do. 'Considering the observations in the interim order, GAAR could potentially be applied to shift profits to entities liable to pay tax in India," said Harshal Bhuta, partner at PR Bhuta & Co, in a statement to The Economic Times. Jane Street Fraud Saga: Full Explained The regulatory action comes after an extensive investigation into alleged manipulation of the Indian stock market through index derivatives, particularly Bank Nifty options, which earned the company massive profits of over Rs 36,500 crore between January 2023 and March 2025. Advertisement In India, it operated through four firms — JSI Investments Pvt Ltd, JSI2 Investments Pvt Ltd, Jane Street Singapore Pte Ltd, and Jane Street Asia Trading Ltd. How Did Jane Street Earn Rs 36,500 Crore By Allegedly Tricking Indian Stock Markets? Between January 2023 and March 2025, Jane Street entities made over Rs 43,289 crore in profits from index options, particularly Bank Nifty (BANKNIFTY) using various strategies that allegedly manipulated markets. These profits were partly offset by losses in other segments like stock futures and cash equity, resulting in a net gain of Rs 36,502 crore. In a 105-page order, Sebi highlighted two key manipulative strategies — 'Intraday Index Manipulation Strategy' and 'Extended Marking the Close Strategy'. Read Those Market Manipulation Strategies : Explained: What Is Jane Street, How It Earned Rs 36,500 Cr From F&O Trades In India, Why Has Sebi Banned It? Sebi noted the following: A staggering Rs 17,319 crore was earned from BANKNIFTY options alone. advetisement Profits were disproportionately high on expiry days, when options contracts expire and price influence can be most potent. Trades were concentrated in short bursts, often aligned with expiry timings. 'JS Group made a total profit of Rs 36,502.12 crores across all segments," Sebi said in the order. SEBI has accused Jane Street of: Violating the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations Misleading market participants, especially retail traders who rely on index movements
Mint
5 hours ago
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Vijay L. Bhambwani's Ticker: Beneath the surface, an undertone of cautious optimism
Dear reader, Last week, I wrote that the bulls had an upper hand. However, markets showed signs of being top-heavy, as higher levels attracted selling. Nervousness over the India-US trade deal and Friday's Sebi ban on Jane Street dampened sentiments. The latter event triggered worries among retail options traders, since options make up the lion's share in the derivatives segment. Traders feared there would be a temporary drought of liquidity as institutional players, especially since algo and AI-capable traders such as Jane Street constitute approximately half of the entire derivatives turnover. My call to deploy tail risk (Hacienda) hedges on all open positions turned out to be a robust strategy, and my readers should continue to maintain this strategy as the period of higher volatility is not over yet. Market internals still indicate that bulls still nurse optimism, though they avoided providing big-ticket support at higher levels. Markets showed resilience by not falling significantly either. Studying the statistical signals below should clarify matters further. Last week, I wrote that industrial metals were likely to witness a routine month-end rally. That occurred, and provided a boost to metal and mining stocks. The month-end is done and dusted, and upsides may run into some profit-taking on these commodities, and by extension, in some of their stock prices too. The long-term bull story in bullion is alive and kicking. Patient delivery-based investors who are willing to overlook short-term volatility with a steely resolve are yet to witness the peak prices of bullion -- just look beyond calendar year 2025. Oil and gas are likely to remain subdued and rallies, if any, are likely to be temporary. I maintain my view that energy markets are well-supplied. This view remains unchanged for months, and should hold for the calendar year, barring sudden unforeseen circumstances. This week will see continued trading action on public sector undertakings, particularly banks. There are some hopes of a divestment in government banks, and the markets are cheering that expectation. Besides, the weightage of the banking and financial sector in headline indices itself means that a boost for these stocks will lend cheer to the markets. Oil marketing companies may see above-average daily ranges, and should provide high-risk traders with good trading opportunities for two-way trading moves. Option traders should note that the Jane Street episode may impart higher-than average volatility; therefore, they should trade light till clarity emerges. Tail risk hedges are a robust idea. Fixed income investors should still keep the powder dry and await the festive season that starts in September. I expect consumer credit demand to perk up, which may push coupon rates mildly higher too. A tutorial video on tail risk (Hacienda) hedges is here - Rear View Mirror Let us assess what happened last week, so we can guesstimate what to expect in the coming week. The week's fall was led by the banking sector, and the broad-based Nifty-50 brought up the rear. A weak US dollar index (DXY) propped up emerging market indices including India. Bullion gained week-on-week, as defensive buying continued. Energy remained under pressure and cheered inflation-wary bulls. The INR displayed strength, adding to the cheerful sentiments. NSE gained market capitalization despite weak indices, and that tells me the broader market sentiment remains cheerful. Market-wide position limits (MWPL) rose routinely post-expiry. US indices gained, providing tail winds to our markets. Retail Risk Appetite I use a simple yet highly accurate yardstick for measuring the conviction levels of retail traders – where are they deploying money. I measure what percentage of the turnover was contributed by the lower and higher risk instruments. If they trade more of futures which require sizable capital, their risk appetite is higher. Within the futures space, index futures are less volatile compared to stock futures. A higher footprint in stock futures shows higher aggression levels. Ditto for stock and index options. Last week, this is what their footprint looked like (the numbers are average of all trading days of the week) – Turnover contribution in the higher-risk, capital-intensive futures segment eased. That tells me traders were unwilling to go out on a limb to go long. In the relatively lower-risk, lower capital requirement options segment, it was the lowest-risk index options that saw the turnover contribution rise, which means derivatives traders were unwilling to take aggressive bets. Matryoshka Analysis Let us peel layer after layer of statistical data to arrive at the core message of the first chart I share is the NSE advance-decline ratio. After the price itself, this indicator is the fastest (leading) indicator of which way the winds are blowing. This simple yet accurate indicator computes the ratio of the number of rising stocks compared to falling stocks. As long as gainers outnumber the losers, bulls are dominant. This metric is a gauge of the risk appetite of 'one marshmallow" traders. These are pure intraday traders. The Nifty-50 fell on a week-on-week basis, but the advance-decline ratio remained above the 1.0 level. At 1.03 level (prior week 1.61) it indicates there were 103 gaining stocks for every 100 losing stocks. Bulls remained optimistic. Watch this metric keenly this week. As long as the daily and weekly average stays above 1.0, bulls are still in control. A tutorial video on the Marshmallow theory in trading is here - The second chart I share is on market-wide position limits (MWPL). This measures the amount of exposure utilized by traders in the derivatives (F&O) space as a component of the total exposure allowed by the regulator. This metric is a gauge of the risk appetite of 'two marshmallow" traders. These are deep-pocketed, high-conviction traders who roll over their trades to the next session/s. The MWPL reading rose routinely, and that indicates traders were willing to enhance their exposure post-expiry. It was marginally lower than the commensurate week last month. That was due to the nervousness over the trade deal and Jane Street. Overall, risk appetite remained steady among swing traders. A dedicated tutorial video on how to interpret MWPL data in more ways than one is available here - The third chart I share is my in-house indicator 'impetus.' It measures the force in any price move. Last week, both indices fell with lower impetus readings. That means the fall lacked selling momentum and/or panic sales. Ideally, prices and impetus readings should rise in unison to indicate a sustainable uptrend. The final chart I share is my in-house indicator 'LWTD.' It computes lift, weight, thrust and drag encountered by any security. These are four forces that any powered aircraft faces during flight; so, applying LWTD to traded securities helps a trader estimate prevalent sentiments. The Nifty ended last week with small losses. The LWTD reading fell too. At -0.04 (prior week 0.19), it indicates the possibility of weak fresh buying. While short-covering can cushion declines, it takes fresh buying to boost levels to all-time highs. A tutorial video on interpreting the LWTD indicator is here - Nifty's Verdict The weekly candle chart shows a small-bodied bearish candle with the prior week's prominently bullish candle. The last candle size was too small to present a major worry to bulls. The price is comfortably above the 25-week average, which is a proxy for a six-month-long holding cost of a retail investor. That means the medium-term outlook is positive for now. Last week, I advocated watching the 25,250 level as an immediate support, which remains in place. As long as bulls defend this level, they remain in the driver's seat. On the flip side, overcoming the 25,750 on a sustained closing basis can trigger a fresh upthrust. Your Call to Action Watch the 25,250 level as a near-term support. Breaking out above the 25,750 level raises the possibility of testing fresh record highs in the coming weeks. Last week, I estimated ranges between 57,800 – 54,700 and 25,725 – 24,500 on the Bank Nifty and Nifty respectively. Both indices traded within their specified resistance levels. This week, I estimate ranges between 58,450 – 55,625 and 26,075 – 24,825 on the Bank Nifty and Nifty respectively. Trade light with strict stop losses. Avoid trading counters with spreads wider than 8 ticks. Have a profitable week. Vijay L. Bhambwani Vijay is the CEO of a proprietary trading firm. He tweets at @vijaybhambwani
