Scam in stock market
SEBI has increased the scope of its investigation on American Global Trading Company Jane Street. The regulatory company will now investigate the trading company in other index and exchanges as well. Earlier, SEBI has stopped Jane Street from trading in the Indian market. Around Rs 4,843 crore has been banned by the regulatory company. But now the troubles of the company are increasing. Strict steps are being taken from SEBI to recover money.
Mint has quoted sources as saying that it may take time to investigate the allegations against the trading company, but SEBI has increased its scope of investigation. Has accelerated it. However, Jane Street justified SEBI's order and said that he would discuss with SEBI. The company claims that it follows all the rules. SEBI has allowed Jane Street to register an answer or objection within 21 days. The company can also challenge this order in the Securities Appellate Tribunal.
SEBI on Friday started an investigation on suspicion of the stock market, in which the name of American company Jane Street came up. SEBI banned the company and four related firms and ordered to seize Rs 4,843 crore. SEBI alleged that Jane Street has made a profit of Rs 36,671 crore by trading in shares, futures and options in a smart way. The company adopted a special strategy on Bank Nifty and Nifty's expiry day. In the morning, she would buy a lot of shares and futures, then after taking short positions in options and selling shares in the afternoon. This would have gone down the index and would benefit from options. Many times in the last two hours, the index would be offered by purchasing shares of Nifty and taking a long position in options, so that the options could be sold in profit. By doing this, Jane Street scammed through his interaction.
Derivatives Market is the largest in the world in India. There were 7.3 billion trades in April, which is about 60% of global equity derivative trading. Many small investors (Retail Investors) take part in Derivatives Trading here. So SEBI has made some rules, such as reducing the number of contracts and increasing the size of trading lots. These rules have reduced the participation of small investors on the day of expiry, but still people pay more attention to less time trading and expiry. From
