A general show for Seebi (Securities and Stock Exchange Council in India) is seen in the Commercial District in Mumbai, India, on July 1, 2025.
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The SEBI (SEBI) is temporarily prevented from the Jin Street Group from reaching the stock market in India, after the American company accused of widespread manipulation in the market.
According to The temporary demand published on the regulator website on ThursdayThe “Jin Street entities” is restricted from reaching the stock market and is more prevented from buying, selling or dealing with another in the securities, directly or indirectly.
SEBI also issued a temporary order to freeze more than 48.4 billion Indian rupees ($ 566.3 million) from Jin Street in alleged illegal gains. He also stated that banks were directed to ensure “no debts, without the permission of Sibi”, for the accounts that the Jin Street entities are either jointly or individually.
Jin Street opposed the results of the temporary Sepi orders and said that she would participate with the organizer, in response to the inquiries from CNBC. A spokesman for the Jin Street added that the company “is committed to work according to all the regulations in the areas where we work all over the world.”
“Without any reasonable economic justifications”
It was claimed that Jin Street used various strategies to artificially influence the Indian standard Elegant 50 Index – which tracks the 50 best companies in the country – and profit is much larger in the index options.
According to the temporary request of 105 -page Seebi, Jin Street will buy strongly large quantities of stocks and future contracts that are part of the bank index, which tracks the performance of the banking sector in India, early in the trading day. The quantum trading company will put great bets on the fact that the index will decrease later in the day.
Jin Street will then sell the situations she bought earlier, withdraw the index less and make her previous bets in the options market more profitable.
While Jin Street will bear some losses, Sibi claimed that he was part of a “deliberate strategy to address indicators in favor of trading and attitudes”, and the losses were compensated through the company’s larger and profitable options.
Although these measures were not a violation of any regulations, Sibi said that “the tremendous intensity and scale” of its intervention, and the rapid reflection of their trading “without any reasonable economic justifications, unlike the simultaneous activity in their positions in the banks’ options markets markets, “.
Protecting retail investors
Sibi pointed out that repeated trading cases continued in the broader criterion of 50 errors, even after the National Stock Exchange of India was issued “explicit advisory” in February 2025.
“Such a terrible behavior, in a clear disregard/ challenge to the explicit consultant issued by NSE in February 2025, shows that, unlike the vast majority of investors in foreign portfolios and other market participants, Jin Street said.
“It is no longer possible to detain the safety of the market, and the belief of millions of investors and young merchants, as hostages of such a reliable representative.”
Divin Chocsi, the founder and director of the wealth management, said the SEBI campaign in Jane Street is a “good example”.
He told CNBC: “Any player who misunderstood the market requires showing discipline. The organizer does his work to maintain the safety of the market.”
Chocsi added that the implementation of trading can be allocated based on the needs and file of the merchant definition, the discovery of the price in the market should be “global for all.”
Kraanthi Bathini, director of the stock strategy at Wealthmills Securities, noted that some companies may “enter the market with innovative and innovative strategies to exploit investors.” Therefore, Sebi needs to “protect the interests of retail investors”, added.
Bathni said that any effect on the markets as a result of this decision will be short -term.
The SEBI step comes at a time when many other global trade companies, from Citadel Securities and IMC trading to Millennium and Optiver, intensify their presence in India, to ride the prosperous derivative markets, which are the largest in the world through traded contracts.
The Indian organizer previously expressed their fears of practices such as Trading algorithmWho said in a report on 2024 allowed the royal merchants and investors in the foreign portfolios in Geni 610 billion Indian rupees in profits in the fiscal year 2024, while retail investors and other market participants lost the same amount during that period.
– Aparajita Saxena from CNBC contributed to this report
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2025-07-04 07:39:00