Unveiling the Jane Street Derivatives Saga: India's Market Manipulation Dance
India's market regulator SEBI launched an investigation into the U.S. trading giant Jane Street for unusual derivatives trading activities following concerns about market manipulation. These activities impacted retail investors significantly, driving SEBI to eventually crack down on Jane Street, who it alleges gained unlawful profits.
More than four months before India's securities regulator formally launched a probe into trading giant Jane Street for alleged market manipulation, it was alerted to unusual activities by the firm, according to sources familiar with the matter.
The National Stock Exchange (NSE) provided data to the Securities and Exchange Board of India (SEBI) as part of its broader preliminary examinations into Jane Street's derivatives trading. Retail investors faced significant losses amidst a booming and under-surveilled trading environment.
Despite SEBI's crackdown, which temporarily barred Jane Street, the firm's activities highlighted broader challenges in policing India's rapidly expanding derivatives market while avoiding stunting its growth.
(With inputs from agencies.)
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