Jane Street is a huge US-based trading company who manages global trades worth billions of dollars daily. They use advanced algorithms (computer programs) to trade in stock and option market. SEBI has banned Jane Street from trading in India because they manipulated index prices (Nifty and Bank Nifty) to make unfair profits. In 2 years, they traded over ₹44,000 crore, they made profits worth ₹36,671 crore. SEBI says ₹4,843 crore of that came from unfair trades. Their large coordinated trades made Nifty and Bank Nifty move sharply in one direction and then reverse—trapping small traders in losses. Many retailers use options or futures on expiry days, and these manipulations led to stop-loss hits, wrong signals, and unexpected losses. If putting ban on such gaint firm, may also impact revenue of trading firms. Due to this Shares of trading platforms like: Nuvama: -6.7%, Angel One: -7.3%, BSE: -6.1% were down in last trading session.
