Indian stock exchange BSE saw its shares plummet another 4% in intraday deals on Friday, July 11, extending its decline in the last one week to 10% after a Mint report stated that the capital market regulator will extend its probe into manipulation by Jane Street to Sensex options contracts as well.
Meanwhile, BSE shares are down 16% since last Thursday, the day the Securities and Exchange of India (Sebi) ordered a ban on the US trading firm.
Sebi widens probe on Jane Street
Earlier, the probe was limited to the National Stock Exchange only, but will now extend to BSE as well, as Sensex contracts have gained significant traction in the last two financial years, the report added.
Sebi barred Jane Street from accessing the Indian stock market for manipulating indices like the Nifty 50 and Nifty Bank on expiry days.
The market regulator also directed the prop trading firm to deposit alleged illegal gains of ₹4,843.5 crore, which Sebi said were made unlawfully. From January 2023 to March 2025, Jane Street’s total profit from trading index stocks and derivatives, and the cash market was ₹36,502.12 crore.
While Nifty 50 and Bank Nifty contracts are highly popular, the Sensex is the third most popular options index. However, the trading volumes on BSE are a miniscule of that of the NSE. NSE has a nearly 95% market share in India’s F&O market. Meanwhile, India accounts for roughly 60% of global equity derivative trading volume, according to the Futures Industry Association.
Jane Street ban fallout
Meanwhile, Sebi ban on Jane Street has squeezed volumes in the country’s options market, as per a Reuters report.
Since the order, index options premium turnover on the NSE and BSE exchanges declined on a week-on-week basis in four of five sessions.
This metric — representing the total value of premiums paid to buy index options like the Nifty 50 — serves as a key indicator of real capital at play, risk appetite, and overall sentiment in the derivatives market.
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