Panic in the stock market! SEBI has banned this giant company, illegal profit of Rs 4843 crore will be confiscated

Mumbai. In a major decision, the Securities and Exchange Board of India (SEBI) has banned US financial firm Jane Street Group and five of its associated companies from trading in the Indian stock market with immediate effect. In an order issued on Thursday, the market regulator has banned these companies from buying, selling or transacting any kind of securities directly or indirectly.
SEBI has taken this tough step due to allegations of Jane Street Group making illegal profits of Rs 4,843 crore by misusing cash equivalents in the futures and options (S&H) segment. The regulator has directed the company to deposit this entire amount in an escrow account in a nationalized bank.

Apart from this, SEBI has also imposed a ban on withdrawals from the bank accounts of Jane Street, making no debits possible without the prior permission of the regulator.

In its order, Sebi has directed Jane Street to square off all its existing open futures and options positions within the next three months or by their expiry date, whichever is earlier.

What is the matter of cash equivalent?

In futures and options trading, cash equivalents are assets that can be easily converted into cash, such as short-term investments. Traders often use them as margin so that they can make large trades in s&h and also earn interest on their investments. SEBI alleges that Jane Street misused this system to manipulate the market and make unfair profits.
Apart from Jane Street Group, the scope of this ban includes JSI Investment Private Limited, JSI2 Investment Private Limited, Jane Street Singapore Private Limited and Jane Street Asia Trading Limited. This move of SEBI reflects its commitment to maintain fairness and transparency in the market.