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From ₹2,400 to ₹2,100 — NSE Feels Heat as Jane Street Gets the Boot


Updated: July 11, 2025 08:42

Image Source: MoneyLife
India's equities derivatives market is left shaken by the temporary ban imposed by the Securities and Exchange Board of India (SEBI) on Jane Street Group LLC, a segment leader. The spillover has caused a sharp correction in the preIPO pricing of the National Stock Exchange (NSE), raising fresh doubts over its highly anticipated listing.
 
Market Impact and Valuation Dip
  • Unlisted shares of NSE have fallen almost 10 percent from recent levels, trading between ₹2,100 and ₹2,150, from ₹2,400.
  • The exchange valuation, which had hit $69 billion, is now facing downward pressure as investors worry about declining derivatives volumes.
  • The slide is reflected in a broader market reaction, as shares in BSE Ltd. fell 12 percent and a Bloomberg index of capital market shares fell 3 percent.
Regulatory Overhang
  • SEBI charged Jane Street with index price manipulation, especially on expiry dates, through forceful trades.
  • The crackdown has also stoked speculation of tighter trading standards, which could also delay NSE's IPO plans further.
  • NSE's initial attempt to list in 2016 was foiled by a colocation server scandal, for which it was given a sixmonth market ban.
Liquidity and Sentiment
  • The Jane Street exit threatens liquidity in the derivatives market, which is dominated by proprietary trading firms.
  • F&O turnover has already declined by 21 percent, with retail as well as institutional players having turned defensive.
  • Experts further add that constant regulatory pressures can reshape India's derivatives landscape.
Sources: Business Standard, Economic Times, Financial Express, Zee Business, Outlook Business, Bloomberg.

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