04 Jul , 2025 By : Debdeep Gupta
Nuvama Wealth Management Ltd, along with shares of other capital market players, took a sharp beating in trade on Friday, July 4, after regulator Securities and Exchange Board of India (SEBI) barred Jane Street from the Indian equity markets.
India’s regulator has restrained Jane Street Group from accessing the local securities market, dealing a severe hit to the US trading firm that generated more than $2.3 billion in net revenue from equity derivatives in the South Asian nation last year.
Nuvama Wealth Management is Jane Street's domestic trading partner. At 9.40 a.m., shares of the firm tumbled 6.3 percent to Rs 7,660.
Further, SEBI said it would seize Rs 4.840 crore ($570 million) from Jane Street, which it claimed is the total amount of unlawful gains made by the fund, according to an order on the regulator’s website.
SEBI said that Jane Street Group entities “are restrained from accessing the securities market and are further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly.”
Other capital market players took a beating in trade as well. The Nifty Capital Markets index was lower by two percent, with Angel One, BSE, and CDSL leading the losses.
The regulator was investigating concerns about a trading strategy where the firm takes large positions in index derivatives and then moves the underlying index to profit from its positions.
Banks have been directed to ensure no debits are made without SEBI’s permission in respect of the accounts held individually or jointly by the entities, according to the order. SEBI has been investigating Jane Street’s derivatives trades after some market participants alleged manipulation by the US firm.
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