Jane street vs SEBI | Bank NIFTY Manipulated? | CA Rachana Ranade
Published: 2025-07-05
Status:
Available
|
Analyzed
Published: 2025-07-05
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Jane Street allegedly made over 36,521 crore rupees in profit between January 2023 and March 2025, with the majority from futures and options trading.
"Jane Street has reportedly earned 36,52.12 cr rupees in profits from 1st January 2023 to 31st March 2025 and believe it or not majority of this profit has been done in the futures and option segment."
Pending
Jane Street's primary trading strategy involved executing trades on expiry days.
"major trades were done on expiry days so expiry trades is what they were mainly attempting"
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Jane Street allegedly bet on Bank Nifty going down, and the purported fraud was conducted within the Bank Nifty index.
"they have said that market will go down market is again bank nifty I may say the market uh inadvertently I actually mean to say bank nifty because the whole fraud has actually been done in bank nifty the alleged fraud has been done in bank nifty"
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On expiry days, Jane Street allegedly bought significant volumes of banking stocks at the market open.
"on the expiry day they bought stocks. They bought stocks which stocks obviously banking stocks. They'll buy a lot of banking stocks in the opening trade."
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Jane Street allegedly bought banking stocks that have a substantial weightage in the Bank Nifty index.
"They buy stocks. Which stocks? Banking stocks which have a good weightage in Bank Nifty."
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Jane Street allegedly accounted for a significant portion (23-24%) of the total traded value in banking stocks like ICICI and Axis Bank, indicating large volume trades.
"Jane Street in itself is buying 23% of the value of ICICI bank Access bank 24% or so you you can imagine the volumes that they are playing with"
Pending
Jane Street allegedly placed a high number of buy orders for stocks like ICICI Bank above the current market price (LTP), suggesting an intent to push prices higher, not just bargain for lower prices.
"out of total 15,316 buy orders 7,368 buy orders were above LTP means if the price of ICICI just hypothetically is what uh let's say whatever 900 rupees they're saying 900 we are ready to buy at 95 we are ready to buy at 910 915 whatever even if we are talking about orders at LTP this is 6,318 and orders below LTP which is very logical is only 1,630"
Correct
Jane Street allegedly began selling banking stocks around midday and continued until the market close.
"they started selling from midn 12 roughly till last till 3:39."
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Jane Street allegedly sold a significant percentage (around 22-25%) of the total traded volume in heavyweights like HDFC and ICICI Bank.
"Jane Street's traded value relative to marketwide traded value out of 100% how much are they selling? 25% in ICS HDSC. Now they're smart. 22% HDSC they are selling. Much more selling is happening here in SDS and HDFC is a heavyweight champion."
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Jane Street allegedly placed a large number of sell orders below the current market price (LTP), indicating an intent to drive prices down rapidly.
"number of sell orders almost 11,389 out of that 8,780 orders are below LTP. So let's say a stock is trading at 100 they are saying stock is trading at 100 but I want to sell at 95."
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Jane Street allegedly collected higher premiums by shorting calls initially, anticipating that Bank Nifty would fall, causing call premiums to approach zero.
"Initially, they have done a call short. they have collected a higher premium and if the stocks really start to go down if bank nifty goes down if they close OTM actually call premium will go to near zero"
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Jane Street allegedly bought put options at significantly lower prices (e.g., 65-72 rupees) after they had decayed and then squared them off at substantially higher prices (e.g., 734 rupees) later the same day, resulting in massive profits.
"And for put they bought it at what? See uh opening was at 229 and it kept on falling and falling and falling and falling till 72 rupees and 70 rupees at 922. Imagine this. The put opens at 229 and it decays to 70 rupees in the first 7 minutes. They buy at 70 72 65 whatever and same day at 339 they're squaring it off at 734 10 times almost"
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SEBI has ordered Jane Street to deposit 4,843 crore rupees, identified as unlawful gains, into an escrow account, but Jane Street disputes these findings.
"Jane Street is instructed to deposit this amount into an escrow account with a scheduled Indian bank But Jane Street is responding to that. We dispute SEB's funding. They're saying we are disputing this."
Correct
SEBI's action against Jane Street is noted as a rare instance of regulatory action taken against a foreign entity.
"this is a very rare instance that Sebi is taking an action against foreign entities."
Correct
Nuama, Jane Street's domestic trading partner in India, experienced a stock price drop of 9-11% due to fears of revenue disruption stemming from the regulatory action.
"Someone like Nuama. Nuama was a domestic trading partner of Jane in India. And that was the reason why stock reaction it fell by 9 to 11% in one session due to the revenue disruption fears."
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A significant reduction in trading volumes, potentially caused by Jane Street's reduced activity, could negatively impact the income of brokerages and exchanges.
"if volumes dry out brokerage brokerages income brokerage houses income could take a hit exchanges income could take a hit"
Correct
While long-term investing is unlikely to be affected, short-term trading, particularly in futures and options (FNO), could be impacted by changes in trading volume.
"from a trading volume perspective does it impact long-term investing? Nowhere long-term investing is not impacted. Okay, but short-term trading, FNO trading that could be impacted."
Correct