SEBI Busts ‘Desi Jane Street’ F&O Scheme, Freezes ₹28 Crore
What Happened
SEBI has uncovered an alleged market manipulation scheme involving linked entities that used coordinated futures and options trades to distort prices and profit from derivatives positions. The regulator froze ₹28.12 crore in alleged gains and barred two entities and four individuals from trading in equity derivatives pending investigation. The case reportedly involved targeting relatively less-liquid stocks and using alternating futures trades to influence options pricing.
Key Takeaways
The action signals SEBI's increasing scrutiny of sophisticated cross-market trading strategies following its high-profile crackdown on Jane Street. Regulators are focusing on protecting market integrity in India's rapidly growing F&O segment by identifying and penalizing manipulative trading practices.