Why BSE and Angel One Shares Are Under Pressure, Jane Street

Shares of capital-market-linked companies such as BSE and Angel One came under pressure in today’s session, extending losses triggered by regulatory action against global trading firm Jane Street. The stocks fell between 3% and 6% during intraday trade on July 8, as concerns over structural trust and foreign institutional participation deepened.

Jane Street Ban: What Happened

On July 3, SEBI imposed a market access ban on Jane Street Group, including its India-linked entities, for allegedly manipulating indices in Bank Nifty and Nifty 50 options. The regulator alleged that Jane Street engaged in a pattern of aggressive buying in early hours and unwinding in later sessions to benefit from large short options positions. Profits from this alleged strategy amounted to ₹4,843 crore, which SEBI has frozen in an escrow account.

While Jane Street has called the allegations “extremely inflammatory” and intends to appeal, the episode has raised broader concerns about the integrity of the market ecosystem, especially given the firm's prominence as a global liquidity provider.

Why Broker and Exchange Stocks Are Falling

Today’s sell-off in stocks such as BSE and Angel One reflects continued investor discomfort with regulatory risk and institutional trust. While these companies were not directly implicated in the SEBI order, the episode has led to:

• Perception risk: These platforms rely heavily on derivatives volumes, especially from high-frequency and institutional participants. Regulatory scrutiny could impact growth assumptions.
• Structural trust concerns: The case has put a spotlight on whether the Indian market ecosystem is fully equipped to detect and prevent sophisticated manipulative strategies, especially on expiry days.
• FPI sentiment: With SEBI acting against a global name like Jane Street, there are questions about how other FPIs and HFTs perceive the Indian regulatory environment, whether as stringent or unpredictable.

Related SEBI Actions and Regulatory Context

While the Jane Street case is one of SEBI’s most high-profile actions against a global trading firm, it follows a series of steps taken over the years to tighten oversight in the equity derivatives ecosystem.

2010: Societe Generale Ban
SEBI barred SocGen from issuing new participatory notes after failing to disclose end-beneficiary ownership, marking an early stand on FPI transparency.

2019–2024: FPI Disclosure Norms
SEBI progressively tightened disclosure requirements for foreign portfolio investors, including enhanced scrutiny of ultimate ownership and changes in control.

May 2025: Derivatives Oversight Rules
SEBI introduced new rules linking position limits to underlying stock liquidity, revising open interest calculations, and strengthening expiry-day surveillance.

July 2025: Post-Ban Surveillance Push
Following the Jane Street action, SEBI announced plans to enhance further its market monitoring systems, particularly targeting manipulative expiry-day strategies and high-frequency trades.

Why This Matters

India is now the world’s largest equity derivatives market, with expiry-day options trading volumes among the highest globally. In FY25, retail traders lost over ₹1.06 lakh crore in derivatives, prompting SEBI to implement measures earlier this year, such as larger lot sizes and tighter position limits.

This latest action reinforces the regulator’s message, but it also poses a balancing challenge: how to maintain market fairness without deterring global liquidity providers.

For listed intermediaries like BSE, CDSL, and brokerages, the uncertainty could weigh on near-term valuations, especially if large volumes from HFTs and FPIs moderate. More broadly, the episode reflects the fragility of trust in complex financial systems, where regulatory confidence is as important as trading volume.

Disclaimer
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities are quoted as an example and not as a recommendation.This is nowhere to be considered as an advice, recommendation or solicitation of offer to buy or sell or subscribe for securities. INDStocks SIP / Mini Save is a SIP feature that enables Customer(s) to save a fixed amount on a daily basis to invest in Indian Stock. INDstocks Private Limited (formerly known as INDmoney Private Limited) 616, Level 6, Suncity Success Tower, Sector 65, Gurugram, 122005, SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428. Refer https://indstocks.com/pricing?type=indian-stocks; https://www.indstocks.com/page/indian-stocks-sip-terms-and-condition for further details.