Investors Alert: SEBI Takes Action on Jane Street for Bank Nifty Manipulation | Stock Market News

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SEBI Takes Action Against Jane Street for Bank Nifty Manipulation

India's stock market regulator, SEBI, has issued a temporary order against Jane Street Group, accusing them of unfair trading in the Bank Nifty index. The companies involved include Jane Street Singapore, Jane Street Asia Trading, JSI Investments, and JSI2 Investments.

What They Did:


SEBI says Jane Street first started buying Bank Nifty stocks very aggressively—both in the cash market and in futures. This made the index go up artificially. At the same time, they secretly took large bearish (downward) bets using options, worth over ₹32,000 crore.

After that, they suddenly sold off the stocks they had bought, which caused the index to crash. Since they had already bet that the index would fall, they made a massive profit from the options.

The Money Involved:


Total Profit Made: ₹36,502 crore

Profit from Options: ₹43,289 crore

Loss in Stock Futures: ₹7,208 crore

Jane Street Singapore Alone Made: ₹25,636 crore


Why This Matters:


This incident has shaken investor trust. It shows that big players can still use unfair strategies in India's stock market. SEBI is expected to now keep a closer eye on high-frequency traders, foreign investors, and those trading in options.

In the short term, this could lead to more price swings in Bank Nifty and other index-related trades.

Disclaimer:-

We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.

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