India’s stock market regulator, the Securities and Exchange Board of India (Sebi), has banned New York-based trading firm Jane Street from dealing securities in the country. The ban is due to allegations that Jane Street engaged in a “sinister scheme” to manipulate derivatives markets and the BANKNIFTY index.
According to Sebi, Jane Street’s actions were aimed at enticing small investors to trade at unfavorable prices, which would benefit the firm at the expense of its investors. The regulator has also asked the company to put over $550 million in “illegal gains” into an escrow account.
Jane Street had made billions of dollars from trading options in India and was one of the largest foreign traders in the country’s securities market. However, the company has denied any wrongdoing and claims to be committed to operating in compliance with all regulations.
The ban is part of Sebi’s efforts to curb manipulation in derivatives trading, which saw 90% of retail investors losing money on trades last year. The regulator has asked Jane Street to appeal the decision within 21 days.
Source: https://www.ft.com/content/bf4fbf13-a22e-4145-9c19-1492cca9167d