Image Source : Times Now
Global trading house Jane Street has been allowed to resume operations in India after depositing $567 million (₹4,843 crore) in an escrow account, meeting a significant SEBI order. This is after allegations of index manipulation in Bank Nifty stocks and options.
Key points:
- SEBI revoked the trading suspension upon confirmation of the deposit, but insisted on close surveillance by NSE and BSE.
- Jane Street cannot execute flagged trading strategies until the investigation is over.
- The firm is reported to have adopted a two-pronged strategy: pumping up Bank Nifty by aggressive buying, and subsequently profiting from short index options as prices fell.
- SEBI's probe is continuing, with scrutiny now extending to other high-frequency trading houses.
Market impact:
- The absence of Jane Street resulted in 20% of F&O volumes decreasing.
- Its phased revival can reshape India's derivatives market and influence regulatory overhauls.
Sources: Moneycontrol, Business Standard, Fortune India, Indian Express, The Week.
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