SEBI’s interim order against global trading firm Jane Street for alleged expiry-day market manipulation has triggered sharp reactions across capital markets and regulatory circles. SEBI has alleged that the Jane Street Group engaged in fraudulent and manipulative trading strategies on index options expiry days by aggressively influencing prices in the cash and futures segments of BANKNIFTY stocks to distort index levels, thereby enabling it to profit from large, pre-positioned index options trades, a conduct that SEBI claims violates the PFUTP Regulations.
In coverage by Neha Joshi in Mint, Mr. Sumit Agrawal, our Founder & Managing Partner at Regstreet Law Advisors, and former SEBI official, noted:
“𝘓𝘢𝘳𝘨𝘦, 𝘢𝘨𝘨𝘳𝘦𝘴𝘴𝘪𝘷𝘦, 𝘰𝘳 𝘦𝘷𝘦𝘯 𝘥𝘰𝘮𝘪𝘯𝘢𝘯𝘵 𝘵𝘳𝘢𝘥𝘪𝘯𝘨 𝘴𝘵𝘳𝘢𝘵𝘦𝘨𝘪𝘦𝘴 𝘢𝘳𝘦 𝘯𝘰𝘵 𝘱𝘦𝘳 𝘴𝘦 𝘶𝘯𝘭𝘢𝘸𝘧𝘶𝘭 𝘶𝘯𝘭𝘦𝘴𝘴 𝘵𝘩𝘦𝘺 𝘢𝘳𝘦 𝘥𝘦𝘤𝘦𝘱𝘵𝘪𝘷𝘦 𝘰𝘳 𝘧𝘳𝘢𝘶𝘥𝘶𝘭𝘦𝘯𝘵. 𝘚𝘌𝘉𝘐’𝘴 𝘤𝘢𝘴𝘦 𝘳𝘦𝘭𝘪𝘦𝘴 𝘰𝘯 𝘱𝘢𝘵𝘵𝘦𝘳𝘯𝘴 𝘢𝘯𝘥 𝘱𝘳𝘪𝘤𝘦 𝘪𝘮𝘱𝘢𝘤𝘵 𝘳𝘢𝘵𝘩𝘦𝘳 𝘵𝘩𝘢𝘯 𝘥𝘪𝘳𝘦𝘤𝘵 𝘦𝘷𝘪𝘥𝘦𝘯𝘤𝘦 𝘰𝘧 𝘥𝘦𝘤𝘦𝘱𝘵𝘪𝘰𝘯, 𝘸𝘩𝘪𝘤𝘩 𝘤𝘰𝘶𝘭𝘥 𝘧𝘢𝘤𝘦 𝘴𝘤𝘳𝘶𝘵𝘪𝘯𝘺.”
Separately, in coverage by Akshata Gorde in businessline, Mr. Sumit Agrawal highlighted: “
𝘗𝘳𝘰𝘧𝘪𝘵𝘢𝘣𝘭𝘦 𝘰𝘳 𝘢𝘨𝘨𝘳𝘦𝘴𝘴𝘪𝘷𝘦 𝘵𝘳𝘢𝘥𝘪𝘯𝘨, 𝘦𝘷𝘦𝘯 𝘪𝘧 𝘪𝘮𝘱𝘢𝘤𝘵𝘧𝘶𝘭, 𝘪𝘴𝘯’𝘵 𝘶𝘯𝘭𝘢𝘸𝘧𝘶𝘭 𝘶𝘯𝘭𝘦𝘴𝘴 𝘪𝘵 𝘪𝘯𝘷𝘰𝘭𝘷𝘦𝘴 𝘥𝘦𝘤𝘦𝘱𝘵𝘪𝘰𝘯 𝘰𝘳 𝘢𝘳𝘵𝘪𝘧𝘪𝘤𝘪𝘢𝘭 𝘱𝘳𝘪𝘤𝘪𝘯𝘨. 𝘛𝘩𝘦 𝘤𝘰𝘳𝘦 𝘭𝘦𝘨𝘢𝘭 𝘤𝘩𝘢𝘭𝘭𝘦𝘯𝘨𝘦 𝘸𝘪𝘭𝘭 𝘣𝘦 𝘱𝘳𝘰𝘷𝘪𝘯𝘨 𝘮𝘢𝘯𝘪𝘱𝘶𝘭𝘢𝘵𝘪𝘷𝘦 𝘪𝘯𝘵𝘦𝘯𝘵.” Copies of the Article is attached herein for reference.
