Jane Street scandal wipes out 35% of index options premium turnover on NSE
market manipulation case
against US trading giant
Jane Street
has sent shockwaves through India's derivatives ecosystem, with
NSE index options
premium turnover plummeting by over a third as the world's largest derivatives exchange grapples with the absence of one of its biggest players.
On Thursday's weekly expiry,
NSE
options premium turnover stood at just Rs 39,625.77 crore on June 17, recording a 35% decline from June's average expiry day turnover of Rs 60,605 crore, exchange data revealed.
Explore courses from Top Institutes in
Select a Course Category
Technology
Project Management
Design Thinking
MCA
Cybersecurity
Data Science
PGDM
healthcare
Finance
Others
CXO
Degree
Healthcare
Digital Marketing
MBA
Operations Management
Management
Product Management
Data Science
Public Policy
Leadership
Artificial Intelligence
Skills you'll gain:
Duration:
12 Weeks
MIT xPRO
CERT-MIT XPRO Building AI Prod India
Starts on
undefined
Get Details
Expiry day turnover has been in relentless decline this month: from Rs 61,511 crore on July 3 expiry, volumes crashed to Rs 45,884 crore last week before tumbling below the critical Rs 40,000 crore mark in the latest trading session.
Index options premium turnover serves as a key measure of real capital deployed and risk appetite, while Thursday's options expiry day traditionally represents the most active trading day of the week.
The crisis erupted after Sebi banned high-frequency trading behemoth Jane Street from Indian markets earlier this month in a market manipulation case that exposed the stunning scale of the firm's operations.
Live Events
Sebi's investigation revealed that Jane Street was "consistently running what appeared to be by far the largest risks in 'cash equivalent' terms in F&O, particularly on index option expiry days." The regulator's findings were damning: "what sets apart the trading pattern of the JS Group as prima facie being manipulative, is the intensity and sheer scale of their intervention in the underlying component stock and futures markets."
During the examination period, Jane Street raked in jaw-dropping profits of Rs 36,502.12 crore across all segments.
Last week, in a bid to return to the Indian markets, Jane Street deposited Rs 4,843.58 crore into an escrow account as it pleaded with Sebi to lift the trading ban. The American quant trading firm has requested that "following the creation of this escrow account in compliance with Sebi directions, certain conditional restrictions imposed under the interim order be lifted and that Sebi issue appropriate directions in this regard," according to Sebi's statement.
The regulator confirmed it is currently examining the request in accordance with the directions of the interim order, leaving the market in suspense about Jane Street's fate.
Sebi's probe revealed a sophisticated manipulation scheme where Jane Street allegedly used cash equities, stock futures, and index futures segments as tools to move prices, accepting losses in these segments to generate far larger profits in the options segment.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fashion Value Chain
7 minutes ago
- Fashion Value Chain
Innovation, R&D Focus, and Policy Reforms could Steer India to a $970 Million Vegetable Seed Hub by 2030
Valued at $8.45 billion in 2024, the global vegetable seed market is expanding rapidly and experts believe India is well-positioned to become its next major hub, provided the right policies are introduced and effectively implemented. With the government placing renewed focus on the horticulture sector through its comprehensive programme for vegetables and fruits, experts in a national conference asserted that strengthening IPR and introduction of biotech along with enabling policy support could drive the Indian vegetable seed market from $740 million in 2023-24 to $970 million by 2030, growing at a CAGR of 4.6%. Experts shared insights and perspectives at the National Workshop on 'Role of Vegetable Seed Sector in Making India a 'Global Seed Hub' 'India's rise in horticulture specially vegetable production is linked to the rich germplasm, diverse growing conditions, R&D innovations and strategic investments by the private and public institutions,' said Dr P K Singh, Agriculture Commissioner, Ministry of Agriculture & Farmers Welfare, Government of India. 'Horticulture has moved from the margins to the mainstream, driven by Seed sector R&D, hybrid seed adoption, and a shift towards a science-led seed industry. Yet, our global potential remains largely untapped.' At a national conference titled 'Role of Vegetable Seed Sector in Making India a Global Seed Hub' organised by Federation of Seed Industry of India (FSII) in Capital on Friday senior government officials, agricultural scientists, seed industry leaders, and policymakers deliberated on regulatory hurdles and ways of unlocking the country's export potential. 'India's seed sector is at a defining moment. With rich agro-climatic diversity, competitive production systems, a dynamic private sector, and strong public research institutions, we have all the building blocks to become a global seed production hub,' said Mr. Ajeet Kumar Sahu, IAS, Joint Secretary (Seeds), Ministry of Agriculture & Farmers Welfare. 'The Ministry is streamlining licensing, introducing science-based regulatory reforms, enabling digital traceability through the SATHI platform, and investing in modern seed infrastructure including processing plants, storage, and testing labs. These steps will ensure farmers get timely access to certified, high-quality seeds with full QR-code-based traceability, helping reduce crop losses, improve productivity, and protect them from spurious inputs,' he added. While government officials highlighted the enabling policy ecosystem being built to catalyze India's global competitiveness, agricultural scientists emphasized the transformative role of hybridization, biotechnology, and public-private collaboration in enhancing productivity. India currently exports about $120 million worth of vegetable seeds annually, mainly to Southeast Asia and the Middle East. Experts believe this could easily double or triple if long-standing policy hurdles are addressed, chief among them a backlog of over 100 Pest Risk Analyses (PRAs) pending since 2016, stalling trade worth an estimated $55 million. 'We call for a unified regulatory approach and the introduction of 'One Nation, One Licence' model for domestic seed registration and a single-window export clearance system. These, along with digitized approvals and longer duration license validity, are critical to improving India's ease of doing business in seeds,' said Mr Rajvir Rathi, Vice Chairman, FSII, Director, Agricultural Affairs & Policy – IBSL & Lead, Traits Licensing, Bayer CropScience Ltd. India's comparative advantages, diverse agro-climatic zones, low production costs, a vibrant R&D ecosystem, and skilled workforce, position it uniquely to lead the global seed trade. Already, over 300 companies operate in the country's formal seed market, contributing 80-85% of the value and investing more than $200 million annually in research. Beyond productivity, the vegetable seed sector has profound socio-economic ripple effects. It supports over 100,000 direct jobs, empowers women smallholders, and offers year-round income stability in rural areas. Nutritionally enhanced vegetables are also addressing hidden hunger by providing essential micronutrients at scale. As global food systems brace for climate and population shocks, the conference concluded with a strong consensus; India must reform fast, innovate continuously, and position itself as the world's most reliable and responsible supplier of high-quality vegetable seeds. The seeds of global leadership, it appears, have already been sown.
Indian Express
7 minutes ago
- Indian Express
‘Law of limitation binds everybody, including govt': Telangana High Court dismisses TSIDC's appeal due to 514-day delay
The Telangana High Court Friday dismissed an appeal filed by the Telangana State Industrial Development Corporation (TSIDC) against an order of a commercial court, citing an 'unexplained' and 'unreasonable' delay of 514 days in filing the plea. The bench of Justice Moushumi Bhattacharya and Justice BR Madhusudhan Rao was hearing an appeal filed by TSIDC challenging a commercial court order dated February 16, 2023, which dismissed its appeal seeking a decree of over Rs 1.3 crore with an annual interest at 17.5 per cent against the respondents. The appeal was filed on December 26, 2024, accompanied by an application for condonation of the significant delay of 514 days. The high court's rejection of TSIDC's appeal means that the original claim of Rs 1,30,31,000, with interest, which was already dismissed by the commercial court, remains dismissed. During the proceedings, the TSIDC filed two affidavits citing the delay and attributed it to several factors such as long time taken to understand the impugned order, officials being occupied with the state and Union election duties leading to a halt in decision-making on legal matters, the file going untraceable, and a change in leadership with three vice chairpersons and managing cirectors taking charge in quick succession. However, the bench found that 'the dates mentioned in the two affidavits contain several unexplained time-gaps..' Specifically, it found a four-month gap between the day the certified copy of the order was ready and the day when the Telangana Assembly elections were announced. Similarly, it found another six-month gap between the polling dates of the Telangana elections and the general elections, for which no explanation was provided. The court also observed that the TSIDC only realised the matter was pending in November 2024 when respondent No. 1 sought the return of original title deeds. This prompted the search for the missing file that was eventually traced in the second week of December 2024. The appeal was filed on December 26, 2024. While TSIDC relied on section 5 of The Limitation Act, 1963, which allows filing of an appeal or any application beyond the prescribed period of time subject to the court being satisfied of the sufficiency of cause shown by the appellant or applicant for the delay, the bench noted that 'the burden of proving the sufficiency of cause lies with the appellant or applicant.' Referring to various Supreme Court judgments, the high court reiterated that delay beyond the prescribed period, particularly in matters under the Commercial Courts Act, 2015, should be condoned by way of exception, not as a rule. 'There is little doubt that the objective of a special statute like The Commercial Courts Act, 2015, is to ensure speedy resolution of high-value commercial disputes, without any exceptions. The focus is on quick resolution which includes government entities when they are parties to commercial disputes,' the order read. The judgment firmly stated that the 'law of limitation binds everybody, including the government'. Noting that the exercise of discretion under section 5 of The Limitation Act, 1963, empowers the court to entertain an appeal or application beyond the prescribed period of limitation subject to the court being satisfied of the sufficiency of cause shown by the applicant/appellant, the court observed, 'Sufficient cause must reflect a sense of purpose and a willingness to restore diligence. The reasons shown cannot be slipshod or nonchalant so as to demand condonation as a matter of entitlement. It must be borne in mind that delay may have created equity in favour of another in the interregnum.' The bench also noted that one of the grounds for the original impugned order against TSIDC was that its claim was already barred by limitation. 'Thus, it is all the more difficult to accept that the appellant would slip into a slumber for 514 days after having suffered an order, inter alia, on the ground of delay,' the court noted. Finding no satisfactory reason to condone the 514-day delay, the high court dismissed TSIDC's application for condonation of delay, consequently rejecting the commercial court appeal. Rahul V Pisharody is an Assistant Editor with the Indian Express Online and has been reporting from Telangana on various issues since 2019. Besides a focused approach to big news developments, Rahul has a keen interest in stories about Hyderabad and its inhabitants and looks out for interesting features on the city's heritage, environment, history culture etc. His articles are straightforward and simple reads in sync with the context. Rahul started his career as a journalist in 2011 with The New Indian Express and worked in different roles at the Hyderabad bureau for over 8 years. As Deputy Metro Editor, he was in charge of the Hyderabad bureau of the newspaper and coordinated with the team of district correspondents, centres and internet desk for over three years. A native of Palakkad in Kerala, Rahul has a Master's degree in Communication (Print and New Media) from the University of Hyderabad and a Bachelor's degree in Business Management from PSG College of Arts and Science, Coimbatore. Long motorcycle rides and travel photography are among his other interests. ... Read More
Mint
7 minutes ago
- Mint
850% rally in five years! Multibagger penny stock to be in focus on Monday; here's why
Multibagger penny stock: PC Jeweller shares are one of the multibagger stocks the Indian stock market has delivered in recent years. The penny stock priced below ₹ 15 is expected to be in focus on Monday as the company board has approved allotment of warrants through the preferential route on a private placement basis. On Friday, the company board formed about the allotment of these warrants in an exchange filing. The warrants have been allotted to one promoter and eleven non-promoters. The only promoter who has been allotted warrants is Balram Garg (HUF). The jewellery brand informed the Indian stock market exchanges about the move saying, "..... we would like to inform further that the Board of Directors of the Company vide a resolution passed by Circulation on July 25, 2025 has allotted 34,67,82,850 (Thirty Four Crore Sixty Seven Lakh Eighty Two Thousand Eight Hundred Fifty) equity shares of face value of Re 1/- (Rupee One Only) each, on conversion of 3,46,78,285 (Three Crore Forty Six Lakh Seventy Eight Thousand Two Hundred Eighty Five) Warrants, to 12 Allottees belonging to 'Promoter Group' and Non-Promoter, Public Category', after adjusting the number of shares, paid-up value per share and premium per share post sub-division / split of face value of equity shares of the Company from 1 equity share of ₹ 10/- each to 10 equity shares of ₹ 1/- each w.e.f. December 16, 2024, upon receipt of the balance amount aggregating to ₹ 146,16,89,712.75 (Rupees One Hundred Forty Six Crore Sixteen Lakh Eighty Nine Thousand Seven Hundred Twelve and Paise Seventy Five Only) at the rate of ₹ 42.15 (Rupees Forty Two and Paise Fifteen Only) per Warrant (being 75% of the Issue Price per Warrant) pursuant to the exercise of their rights of conversion of Warrants into equity shares in accordance with the provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The newly allotted equity shares shall rank pari-passu with the existing equity shares of the Company." In one month, PC Jeweller's share price has ascended 20 per cent, whereas in the last six months, this penny stock has delivered just 8 per cent returns. In YTD time, this multibagger penny stock has generated zero returns by logging a decline of around 10 per cent. However, in one year, PC Jeweller's share price has ascended 70 per cent, while in the last five years, this multibagger penny stock has risen nearly 850 per cent. The multibagger penny stock is available for trade on both the NSE and the BSE. It ended on Friday with a trade volume of nearly 4.96 crore and a market cap of ₹ 9,567 crore. Its 52-week low is ₹ 8.20 apiece, and its 52-week high is ₹ 19.65 per share on the NSE. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
