Meesho files IPO draft paper with SEBI via confidential route
The resolution to launch an IPO was passed in the Extraordinary General Meeting on June 25. The company shared its plans to raise at least ₹4,250 crore in the initial public offering.
"Meesho has filed DRHP with SEBI through confidential route," sources said on Thursday. However, the total size of the IPO comprising secondary share sale could not be ascertained.
A query sent to Meesho in this regard did not elicit any reply.
The company has opted for the confidential pre-filing route, which allows it to withhold public disclosure of IPO details under the draft red herring prospectus (DRHP) until later stages.
Market experts note that the confidential pre-filing route offers companies greater flexibility and reduces the pressure to go public quickly. Unlike the traditional route, which requires companies to launch their IPOs within 12 months of receiving Sebi's approval, the pre-filing route extends this window to 18 months from the receipt of final comments.
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Time of India
32 minutes ago
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Jane Street fallout: Derivatives trading volumes may be hit
Our Bureau Mumbai: The derivatives market could take a major hit in trading volumes after the Securities and Exchange Board of India (Sebi) cracked down on Jane Street Capital , halting its operations in Mumbai and impounding more than half a billion dollars of local assets. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Scientists: Tinnitus? When tinnitus won't go away, do this (Watch) Hearing Magazine Undo Analysts said the regulatory action would put pressure on revenue for intermediaries dependent on derivative market activity, with volumes shrinking in response to Sebi's stiff punitive measures against one of the biggest proprietary trading firms in the segment. "Jane Street is one of the largest traders contributing to Indian markets," said Siddarth Bhamre, head of institutional research, Asit C Mehta. "When big players are banned for wrongdoing, others become cautious and reduce activity, leading to lower volumes. Traders may also face fewer counterparties, potentially causing a further drop in F&O volumes ahead." The capital market regulator has taken its toughest action ever against a foreign trading firm by targeting Jane Street, one of the world's largest quant trading firms that's also among the highest paymasters at India's top technology campuses. Live Events Highlighting the broader market implications, Zerodha Founder and CEO Nithin Kamath cautioned that action against proprietary trading firms like Jane Street, which contribute nearly half of the options trading volumes , could also dampen retail participation. "There's a flip side. Prop trading firms like Jane Street account for almost 50% of options trading volumes. If they pull back which looks likely it could also impact retail activity, which makes up about 35%. This could spell bad news for both exchanges and brokers," Kamath wrote on X. He added that the coming days would be crucial in gauging the fallout. "The next few days will be telling. F&O volumes might show just how dependent we are on these prop giants. I'll share more data as and when anything interesting comes up," Kamath wrote on the social media platform. In the wake of the Sebi order, shares of Nuvama Wealth Management , capital market service provider Central Depository Services and stock exchange BSE slumped following the regulator's action. Nuvama Wealth shares fell the most, dropping 10.6% as the firm is Jane Street's domestic trading partner, which got caught up in the regulatory crossfire, triggering investor anxiety despite no direct accusations against the firm. Along with Nuvama Wealth, shares of BSE fell 6.4%, while CDSL plunged 2%. In a strongly worded 105-page interim order, Sebi accused Jane Street and its associated entities of using complex high-frequency trading strategies to manipulate the Nifty 50 and Bank Nifty Indices. The regulator also said these tactics misled retail options traders and gave Jane Street an edge in India's booming derivatives market. The interim order alleged that Jane Street earned unlawful profits of ₹4,843 crore ($570 million). Jane Street runs its operations in India through four group entities-two based locally and two located in Hong Kong and Singapore, respectively. The firm established its first Indian unit in December 2020, while the other two Asian entities participate in Indian markets as registered foreign investors.
Mint
an hour ago
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The Indian stock market regulator's action against Jane Street after the alleged index manipulation came to light has reignited concerns over just how exposed and powerless retail traders remain in the high-stakes world of derivatives trading. The Securities and Exchange Board of India (SEBI) on July 3 temporarily barred Jane Street from accessing the Indian stock market and also impounded ₹ 4,840 crore from the US trading firm, which the regulator claimed is the total amount of 'unlawful gains' made by it. In its 105-page order SEBI, in detail, flagged the 'manipulative' and 'fraudulent' trades by Jane Street that mostly took place in the Nifty Bank Index's weekly options contracts and its underlying constituents in the cash market. SEBI alleges that Jane Street manipulated the Bank Nifty index by making aggressive trades in the morning to push up the index, only to reverse those trades later while holding option positions that profited from these moves. Over a 2-year period, they are said to have made ₹ 43,289 crore in gains from options — a significant chunk of which SEBI believes came through unfair means. According to media reports, SEBI has widened an investigation into alleged market manipulation to include other indexes and exchanges. India is the world's largest derivatives market, accounting for nearly 60% of global equity derivative trading volumes of 7.3 billion trades in April, a Reuters report, quoting the Futures Industry Association said. And India's retail investors are the most vulnerable to high-risk derivative trading, with 93% of them making losses as per a SEBI study. "The findings of an earlier research report by SEBI, which inter alia states that 93% of retail investors made losses when trading in the options market, now gain additional context. Such losses, when juxtaposed with the abnormally high profits made by JS Group entities as a result of the prima facie manipulation of the cash, futures and options markets, are reflective of the deep damage that the group has inflicted through their illegal activities," SEBI said in its order. This kind of manipulation, if proven true, not only distorts the market but also harms retail investors who trade with trust and limited capital, said Gaurav Goel, Founder & Director at Fynocrat Technologies. So how can SEBI ensure this doesn't happen again? Goel has listed four ways: Manipulators often trade in both the stock and the options market to create fake price moves. SEBI should build systems that track both markets together and raise alerts when something looks suspicious. Big foreign firms often trade through complicated structures. SEBI should ensure we know who is really behind those trades, and that they follow Indian rules clearly. Most of these manipulations happened on weekly expiry days. SEBI should: ⦁ Set limits on how much one can trade on expiry. ⦁ Ask for extra margin on risky positions. This will make it harder for anyone to move the market just to benefit from options. If a firm keeps making huge profits in a specific pattern, SEBI should start asking questions early, not wait for years. Fast action means less damage. Meanwhile, Harshal Dasani, Business Head at INVasset PMS, said moving forward, SEBI is likely to enhance its monitoring capabilities, focusing not just on end-of-day surveillance but also on real-time pattern recognition. This would allow for faster detection of abnormal trading activities, such as artificial price manipulation in index options, futures, and the cash market, he added. He also made a case for the introduction of stricter guidelines around expiry-day positioning, particularly regarding the open interest build-up and intra-day market movements, which were key elements in the Jane Street case. "Furthermore, regulatory bodies could require greater transparency in algorithmic trading strategies and increase the reporting requirements for proprietary trading desks. For PMS and AIFs, SEBI could impose mandatory internal audits to ensure compliance with market conduct standards," Dasani said, adding that these actions would not only tighten the regulatory framework but also foster a culture of greater accountability among institutional investors, reinforcing the integrity of India's financial markets. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
