Sebi's Jane Street ban: Zerodha's Nikhil Kamath shocked trading firm ‘kept at it despite warnings'; quips ‘they're used to lenient US regulatory regime'
'You've got to hand it to SEBI for going after Jane Street. If the allegations are true, it's blatant market manipulation. 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 US regulatory regime. 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,' Kamath posted on X.
'That said, there's a flip side. Prop trading firms like Jane Street account for nearly 50% of options trading volumes. If they pull back— which seems likely —retail activity (~35%) could take a hit too. So this could be bad news for both exchanges and brokers. The next few days will be telling. F&O volumes might reveal just how reliant we are on these prop giants.
I'll share more data as and when anything interesting turns up,' he added.
Jane Street is accused of executing a massive Rs 36,500 crore scam by booking Rs 43,289 crore in options profits while deliberately incurring Rs 7,208 crore in losses in the futures and equities markets, according to an ET report. Sebi, in a 105-page interim order issued Thursday, said the firm manipulated market prices by gaming the auction mechanism on the NSE and the BSE, thereby distorting the true price discovery process.
The interim order imposed sweeping restrictions on Jane Street and its related entities. The firms have been barred from accessing the securities market — directly or indirectly — and their bank, demat, and custodial accounts have been frozen. While no debits are permitted without Sebi's approval, credits can be accepted. In addition, the regulator has ordered the impounding of Rs 4,843.57 crore in alleged illegal gains, to be placed in an escrow account with a lien in Sebi's favour.
The entities have also been prohibited from disposing of or alienating any of their assets in India until the full amount is deposited. Sebi has given Jane Street 21 days to file objections and has offered the opportunity for a personal hearing.
In response, Jane Street told Reuters in an emailed statement: 'Jane Street is committed to operating in compliance with all regulations in the regions we operate around the world. Jane Street disputes the findings of the SEBI interim order and will further engage with the regulator.'
Meanwhile, stock exchanges have been instructed to closely monitor any future dealings by the firm to ensure there is no recurrence of similar behaviour.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
42 minutes ago
- Time of India
Cops on hunt for man who set fire to house over financial row in Bengaluru
Bengaluru: A 45-year-old man allegedly set fire to the house of a relative over a financial dispute in Vivek Nagar recently. According to police, there were no casualties but the house was damaged. The accused has been identified as Subramani, a resident of Ejipura. According to the complaint filed by Satish Kumar, 41, a resident of 4th Cross in Vivek Nagar, the incident took place around 5.20pm on July 1. Satish works as a security trainer and investigation officer for a private security firm in Whitefield. He lives in a three-storey building with his mother, Venkataramani, and brothers, Mohandas, Vijay Kumar, and Ravikumar. According to Satish, around eight years ago, his aunt (father's sister) Vatsala's daughter Parvati took a loan of Rs 5 lakh from Venkataramani, for the marriage of her daughter Mahalakshmi aka Ammu. After a few years, Venkataramani asked Parvati to return the money. Both Parvati and Mahalakshmi allegedly got angry over this and abused the woman verbally. On the evening of June 30, Mahalakshmi called Satish and told him his mother and brother Ravi were asking for the money repeatedly. She allegedly told him they needed to back off or risk facing dire consequences. You Can Also Check: Bengaluru AQI | Weather in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru Following the threats, Satish and others went to Parvati's house around 7.30pm and questioned why they were creating a fuss. They asked the family to settle the issue with talks and return the money. The following day, around 5.30pm, Satish's mother called him and said someone had set fire to the ground floor of the house when his elder brother Mohandas was sleeping. The neighbours who saw the fire managed to douse it. The shoe rack, window, and main door of the house were gutted. On returning to the house, Satish checked CCTV footage and saw Subramani, Parvati's nephew, bringing petrol in a bottle and pouring it from the entrance of the house to the shoe rack, and setting it on fire with a matchstick. Vivek Nagar police have registered a case under BNS Sections 109 (attempt to murder), 326 (mischief by injury, inundation, fire or explosive substance, etc.), 351 (criminal intimidation), and 352 (intentional insult with intent to provoke breach of peace). The accused is at large, a senior officer said.
Time of India
42 minutes ago
- Time of India
Another targeted killing, double murder witness shot dead in Najafgarh
New Delhi: In yet another targeted killing in the capital's ongoing gang war, unidentified gunmen shot dead their rival in southwest Delhi's Najafgarh on Friday evening. The victim was a witness in a case of double murder reported last year. Tired of too many ads? go ad free now The attack is suspected to be the work of the Gogi gang. Earlier this week, gangster Kapil Sangwan's shooters murdered the nephew of rival Manjeet Mahal. The target's daughter was also shot at in the melee. In Friday's incident, police received a PCR call around 7.20pm and rushed to the spot. The victim, later identified as Neeraj, a resident of Nangli Shakrawati, was sitting in his car when he was ambushed by two-three bike-borne assailants around 7.15pm in Najafgarh. Police said the attackers fired multiple rounds at Neeraj, killing him on the spot. The killing is being seen as a move to silence witnesses and derail the investigation in the double murder case. Police suspect gangster Harsh Dhankad alias Chintu, recently deported from the Maldives, and absconding gangster Sanju Dahiya, currently believed to be abroad, may have orchestrated the killing. Both are considered close aides of slain gangster Jitender Gogi and are thought to be reviving the gang's operations. The assailants fled the scene after the shooting. Police launched a search operation and are scanning CCTV footage from the area to identify them. Neeraj, wanted in a 2021 murder case, was on the run as police had declared a reward of Rs 1 lakh on him. He was affiliated with the Tillu Tajpuria gang, an arch rival of the Gogi faction, and also worked for the Kaushal Chaudhary gang. Sources said that Neeraj was a crucial witness in a high-profile Feb 2024 double murder case, in which two men were shot in the head from point-blank range inside a salon in Najafgarh. The victims were identified as Sonu (34) and Ashish (21), small-time bookies who had rental businesses. Ashish had a criminal record, police said. Neeraj, who was a friend of the duo, had escaped by hiding in a room when the gunmen appeared.
Time of India
an hour ago
- Time of India
OnePlus announces Amazon Prime Day offers: OnePlus 13, OnePlus Nord CE 4, OnePlus Bullets Wireless Z3 and others to be available with up to Rs 10,000 discount
OnePlus has announced its deals for Amazon Prime Day 2025 , with offers going live from July 10 as part of early access and running through July 14. As revealed by the company, discounts will be available on several OnePlus products, including the latest smartphones, audio devices, and tablets. The company's flagship phone, the OnePlus 13, will be available at an effective price of Rs 59,999, after combining an instant bank discount and a limited-time price cut. Other models like the OnePlus 13s, 13R, and Nord CE4 Lite will also see price reductions. The company said that these offers are not limited to Amazon — customers can also find them on OnePlus Experience Stores, and major retail partners under the OnePlus Monsoon Sale , which runs from July 10 to July 15. Amazon Prime Day sale: Offers on OnePlus phones As mentioned above, the OnePlus 13 will be sold at an effective price of Rs 59,999 in the upcoming sale. This includes a Rs 5,000 instant bank discount on select cards and a Rs 5,000 price drop. Customers can also opt for no-cost EMI options for up to nine months. The recently launched OnePlus 13s will be available at Rs 49,999, which includes a Rs 5,000 instant bank discount and an additional Rs 5,000 exchange bonus. No-cost EMI options for up to 12 months are also available on select bank cards. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo The OnePlus 13R will be offered at an effective price of Rs 39,999 after applying a Rs 3,000 bank discount. Additionally, customers purchasing the 13R will receive a free pair of OnePlus Buds 3. This model also comes with a no-cost EMI option for up to six months. For budget-conscious buyers, the OnePlus Nord CE4 Lite will be available at Rs 15,999. This price includes a Rs 2,000 discount on select credit cards, along with up to three months of no-cost EMI. Amazon Prime Day sale: Offers on OnePlus audio devices Alongside smartphones, OnePlus is also offering deals on its audio products. The newly launched OnePlus Bullets Wireless Z3 will be priced at Rs 1,549 with a Rs 150 instant bank discount. Other audio devices include the OnePlus Buds Pro 3 at Rs 8,999 after a Rs 1,000 bank discount, and the OnePlus Buds 3 at a special price of Rs 4,299. The OnePlus Bullets Wireless Z2 will be available at Rs 1,149 with a Rs 100 bank discount, while the Z2 ANC model is priced at Rs 1,599 with a Rs 200 discount. The OnePlus Nord Buds 3 Pro will also be available at a special price of Rs 2,399, including a Rs 300 discount on select bank cards. OnePlus is also offering deals on its tablet range. The OnePlus Pad Go (8GB + 128GB Wi-Fi) will be available at Rs 13,999, with a Rs 2,000 instant bank discount and an additional Rs 1,000 student discount. The LTE version with the same storage will be priced at Rs 15,499 with the same offers, while the 256GB LTE version will be sold for Rs 17,499. For users looking for a more powerful tablet, the OnePlus Pad 2 (8GB + 128GB Wi-Fi) will be offered at Rs 32,999 after a Rs 3,000 bank discount and will include a free Stylus 2. The higher-end OnePlus Pad 2 with 12GB RAM and 256GB storage will be available at Rs 35,999 with the same bundled offers. Google Pixel 9 Pro After 1 Year: Still a Flagship Worth Buying in 2025? | Long-Term Review AI Masterclass for Students. Upskill Young Ones Today!– Join Now
