Jane Street clampdown raises big questions for Sebi: Can the regulator stop another derivatives fraud?
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Sebi's crackdown on Jane Street has jolted the country’s financial markets, exposing regulatory blind spots and triggering urgent debate over whether the regulator can keep pace with the speed, complexity, and scale of modern derivatives trading. As the dust settles, all eyes are now on the regulator’s next move, and whether it can restore trust in a market where 93% of retail options traders are already losing money. “This kind of manipulation, if proven true, not only distorts the market but also harms retail investors who trade with trust and limited capital,” Gaurav Goel, Founder and Director at Fynocrat Technologies told The Economic Times. “The damage isn’t just financial—it erodes faith in the system.” Sebi barred the U.S.-based quant trading firm Jane Street and four affiliates from accessing Indian markets on July 3 and ordered the impounding of Rs 4,840 crore in alleged unlawful gains. The regulator’s 105-page order accused ...