Latest news with #JS
Time of India
a day ago
- Business
- Time of India
Jane Street vs Sebi case places Rs 6 lakh crore multibagger corner of Dalal Street on edge
Sebi 's explosive crackdown on American hedge fund Jane Street has sent tremors through India's Rs 6.2 lakh crore capital market infrastructure, with the regulatory action targeting alleged market manipulation worth Rs 36,500 crore in profits threatening to reshape Dalal Street's derivatives landscape. The Nifty Capital Market index, comprising 15 stocks with a combined market capitalization of Rs 6.2 lakh crore, traded flat on Monday after Friday's selloff as investors grappled with the implications of Sebi's interim order barring Jane Street from India's securities market. Capital market infra-related stocks have been giving multibagger returns on the back of surge in retail as well as institutional participation in India's growth story. In the last 3 years, BSE shares are up over 1,100%, while others like MCX India, Anand Rathi Wealth, Motilal Oswal, 360 One WAM, CDSL and others have also been multibaggers. Jefferies said as Jane Street "participated in the cash & derivatives markets as an FPI as well as a member, hence, its contribution in market volumes would be included in FPI as well as prop categories." The brokerage estimates that Jane Street's contribution to BSE would be around 1% of the exchange's business. According to Jefferies' analysis of exchange data, "FPIs form 3-8% of equity derivatives turnover and prop traders form 60-65% of total; rest by individuals & others," highlighting the critical dependence of India's derivatives market on proprietary trading firms. The global brokerage noted that Jane Street can "contest the claim or settle it and continue participation in the market," while observing that "given that the inquiry was already underway, we understand its activity levels have declined over the past few months." Also Read | Jane Street aftermath: 4 stocks suffer Rs 12,000 crore wipeout in collateral damage Jefferies' detailed impact assessment shows stark differences across market participants. "For BSE, derivatives drive ~58% of FY26E revenues. In this segment, FPIs drive ~3-4% of turnover, and we estimate that contribution from JS would be a smaller subset of that (~1% as per JEFe). Hence, we see a limited impact of JS on BSE's earnings," the brokerage stated. However, Nuvama faces significantly higher exposure. "In the case of Nuvama, asset services form ~26% and IB & IE form ~20% of our FY26E revenues, while contribution to profits is higher given lower C/I ratios. We understand that JS could be an important client for Nuvama and assuming ~15-20% of asset services and IE revenues come from it, we expect an impact of ~5-6% on overall revenues and ~7-8% on earnings," Jefferies warned. Jefferies' conversations with market participants reveal mixed signals about the fallout. "Prop traders/ HFTs see a manageable impact from JS' exit as the fall in its turnover may be made-up by props/ HFTs as manipulative factors potentially reduce," the brokerage noted, adding that "there should not be a counterparty risk on JS' contracts as trades are covered by the clearing corporations and JS has 3 months to unwind open positions." The brokerage emphasized that "the key unknown is whether this instance can lead to a knock-on impact on trading vols, and we feel that trends over the next week on derivatives volumes will be key to watch, especially the index derivatives expiries on Tuesday & Thursday." Also Read | Explained: What is Jane Street and how it made Rs 36,500 crore profit by gaming Dalal Street Interestingly, Jefferies observed that "index options premium turnover was a tad higher week-on-week (Wow) for both exchanges (i.e. this Friday vs. last Friday) and a tad lower than 2-month averages," suggesting immediate market resilience despite the regulatory shock. Industry voices echo concerns "Prop trading firms like Jane Street account for nearly 50% of options trading volumes. If they pull back— which seems likely —retail activity (~35%) could take a hit too. So this could be bad news for both exchanges and brokers," warned Nithin Kamath, CEO of Zerodha. Dinesh Thakkar, Managing Director, Chairman and Founder of Angel One, emphasized the structural nature of India's market growth: "Retail participation in equity derivatives has surged from just 2% in 2018 to over 40% in 2025. India's market opportunity is structural, not cyclical and certainly not dependent on any one firm." "Jane Street is one of the largest traders contributing to Indian markets," explained Siddarth Bhamre, head of institutional research at Asit C Mehta. "When big players are banned for wrongdoing, others become cautious and reduce activity, leading to lower volumes." Regulatory ramifications Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, observed: "The regulatory action on Jane Street and its implications will be closely watched by the market. The volume of derivative trading is likely to take a hit impacting stock exchanges and some brokerages." Ashish Nanda, President & Chief Digital Business Officer at Kotak Securities, outlined broader implications: "HFT's will surely be feeling the heat. Many will be re-assessing their strategies. The fact is that HFT firms provide a lot of liquidity in the markets. If there is reduction in activity by HFT's, it will also impact retail volumes." Veteran market expert Ajay Srivastava struck a defiant tone: "Let us be honest, every market in the world, including the US market, had these problems of being the bad guys... Just catch the guy, penalise him, show him this thing, who the brokerages who are part of it penalise them heavily, does not matter. Make them an example that no one dares do it again." As Jefferies noted, "What is unclear & how to judge impact," with the next derivatives expiry cycles on Tuesday and Thursday set to reveal whether India's Rs 6 lakh crore capital market infrastructure can absorb the shock or if Jane Street's exit marks the beginning of a broader algorithmic trading exodus from Dalal Street.
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Business Standard
3 days ago
- Business
- Business Standard
Retail trading at risk if proprietary giants like Jane St exit: Zerodha CEO
Zerodha founder and CEO Nithin Kamath has cautioned that retail trading activity could be impacted if proprietary trading firms like Jane Street, which contribute nearly 50 per cent of options trading volumes, scale back their participation in the market. This development could have negative implications for both exchanges and brokers, he added. "Prop trading firms like Jane Street account for nearly 50 per cent of options trading volumes. If they pull back which seems likely retail activity (~35 per cent) could take a hit too. So this could be bad news for both exchanges and brokers," Kamath said on X. "The next few days will be telling. F&O volumes might reveal just how reliant we are on these prop giants," he added. In an order released in the early hours of Friday, the market regulator found Jane Street (JS), a New York-based hedge fund, guilty of manipulating the indices by taking bets in the cash, and, futures and options markets simultaneously for making handsome gains. It has barred the hedge fund from accessing the market and impounded over Rs 4,843 crore in gains. The probe has found that JS made a profit of Rs 36,671 crore on a net basis during the probe period from January 2023 - May 2025. Kamath said that if the allegations against Jane Street are true, it's "blatant market manipulation" and despite warnings from the exchange, it continued. "The shocking part? They kept at it even after receiving warnings from the exchanges. Maybe this is what happens when you're used to the lenient U.S. regulatory regime. Think about the structure of U.S. markets: dark pools, payment for order flow, and other loopholes that allow hedge funds to make billions off retail investors. "None of these practices would be allowed in India, thanks to our regulators, You've got to hand it to Sebi for going after Jane Street," he added.
Mint
3 days ago
- Business
- Mint
Retail trading may be impacted if prop giants like Jane Street step back, warns Zerodha CEO
New Delhi, Jul 5 (PTI) Zerodha founder and CEO Nithin Kamath has cautioned that retail trading activity could be impacted if proprietary trading firms like Jane Street, which contribute nearly 50 per cent of options trading volumes, scale back their participation in the market. This development could have negative implications for both exchanges and brokers, he added. "Prop trading firms like Jane Street account for nearly 50% of options trading volumes. If they pull back – which seems likely – retail activity (~35%) could take a hit too. So this could be bad news for both exchanges and brokers," Kamath said on X. "The next few days will be telling. F&O volumes might reveal just how reliant we are on these prop giants," he added. In an order released in the early hours of Friday, the market regulator found Jane Street (JS), a New York-based hedge fund, guilty of manipulating the indices by taking bets in the cash, and, futures and options markets simultaneously for making handsome gains. It has barred the hedge fund from accessing the market and impounded over ₹ 4,843 crore in gains. The probe has found that JS made a profit of ₹ 36,671 crore on a net basis during the probe period from January 2023 - May 2025. Kamath said that if the allegations against Jane Street are true, it's "blatant market manipulation" and despite warnings from the exchange, it continued. "The shocking part? They kept at it even after receiving warnings from the exchanges. Maybe this is what happens when you're used to the lenient U.S. regulatory regime. Think about the structure of U.S. markets: dark pools, payment for order flow, and other loopholes that allow hedge funds to make billions off retail investors. "None of these practices would be allowed in India, thanks to our regulators, You've got to hand it to Sebi for going after Jane Street," he added.
Indian Express
14-06-2025
- General
- Indian Express
Explained: The cost of rising imports
Rao Gulab Singh Lodi has harvested roughly 90 quintals of summer moong (green gram) from his 16-acres land in Nanhegaon village of Madhya Pradesh's Narsinghpur district. His major worry: The government's apathy in procuring the pulses crop that's fetching Rs 6,000 or so per quintal in the open market, as against its official minimum support price (MSP) of Rs 8,682. It's not only moong. Lodhi cultivates soyabean during the kharif (monsoon) season, sowing the leguminous oilseed in early-July and harvesting by mid-October, followed by chana (chickpea) and masoor (red lentil) during rabi (winter-spring). After harvesting masoor towards March 10 and chana around March 15-20, he sows summer moong that matures in 60-70 days. In none of these crops is there any systematic government procurement at MSP, comparable to that in rice and wheat. 'It is my misfortune that I cannot grow rice or even wheat (except for self-consumption) here. The black cotton soil in my area is basically suitable for pulses and oilseeds,' says Lodhi. The 65-year-old is a progressive farmer. He plants the best recommended varieties, whether in soyabean ('JS 20-116' and 'JS 2172' bred by the Jawaharlal Nehru Krishi Vishwa Vidyalaya at Jabalpur), moong ('PDM 139' by the Indian Institute of Pulses Research, Kanpur), masoor ('IPL 329' by the same institute) or chana ('Pusa Manav' by the Indian Agricultural Research Institute, New Delhi). But Lodhi isn't as lucky as the farmers who take rice and wheat. Soyabean is selling in MP's mandis at Rs 4,100-4,200 per quintal. That's below not only the MSP of Rs 5,328 for the upcoming 2025-26, but even the Rs 4,892 of last year's crop. The low prices notwithstanding, Lodhi is going ahead with planting soyabean: 'Vikalp kya hai (what option do I have)?'. The woes for Indian pulses and oilseeds growers come amid all-time-high imports during 2024-25 (April-March). In the case of pulses, these touched 7.3 million tonnes (mt) and valued at $5.5 billion, surpassing the previous record of 6.6 mt and $4.2 billion for 2016-17. Pulses imports had actually registered a substantial dip after 2017-18, to an average of 2.6 mt worth $1.7 billion during the subsequent five years (Charts 1a and 1b). This came on the back of improved domestic production. India's pulses output, which stood at 19.3 mt in 2013-14 and 17.2 mt in 2014-15 and 16.3 mt in 2015-16 (both drought years), climbed to 27.3 mt in 2021-22 and 26.1 mt in 2022-23. Much of that was courtesy of chana and moong, with scientists breeding short-duration varieties (100-120 days) requiring hardly any irrigation in the former and those amenable to growing across all seasons in the latter. Farmers today plant moong in kharif and rabi as well as spring and summer. However, the relative self-sufficiency or atmanirbharta achieved in pulses was reversed in 2023-24, which was an El Niño-induced drought year. Domestic production dropped to 24.2 mt in 2023-24 and recovered partly to 25.2 mt in 2024-25, as per the Agriculture Ministry's data. Falling output and retail inflation in pulses soaring to double digits by mid-2023 led to a slashing of duties on imports, which peaked during the last fiscal. The 7.3 mt of pulses imports in 2024-25 included 2.2 mt of yellow/white peas (largely from Canada and Russia), 1.6 mt of chana (from Australia), 1.2 mt each of arhar or pigeon-pea (from Mozambique, Tanzania, Myanmar, Sudan and Malawi) and masoor (from Canada, Australia and United States), and 0.8 mt of urad or black gram (from Myanmar and Brazil). As imports surged, the consumer price index (CPI) inflation in pulses eased to 3.8% year-on-year by December 2024 and further to 2.6%, -0.4%, -2.7%, -5.2% and -8.2% in the following five months. The shoe is on the other foot now, with arhar and chana selling at Rs 6,400-6,450 and Rs 5,450-5,500 per quintal respectively in Maharashtra's Latur mandi, below their corresponding MSPs of Rs 7,550 and Rs 5,650. In vegetable oils, the story has been a more uniform one – of increasing import dependence. The last 11 years have seen imports more than double from 7.9 mt to 16.4 mt, a trend that the Narendra Modi government may want to arrest, if not reverse. In value terms, imports almost trebled from $7.2 billion in 2013-14 to $20.8 billion in 2022-23, which was around the time when international prices skyrocketed owing to supply disruptions from the Russia-Ukraine war. While global prices have come off those peaks, the quantum of imports has continued to rise (Charts 2a and 2b). The 16.4 mt of imports during 2024-25 mainly comprised 7.9 mt of palm (primarily from Indonesia and Malaysia), 4.8 mt of soyabean (from Argentina and Brazil) and 3.5 mt of sunflower oil (from Russia, Ukraine and Argentina). On the other hand, India's production of oil from domestically grown oilseeds and secondary sources such as cottonseed, rice bran and maize is estimated at just about 10 mt, translating into an import dependence of well over 60%. CPI inflation in vegetable oils, unlike pulses, has been ruling at double digits since November 2024, with the latest May reading at 17.9%. It explains the Modi government's decision, on May 30, to cut the basic customs duty on crude palm, soyabean and sunflower oil from 20% to 10% and the overall import tariff (after adding an agriculture cess and social welfare surcharge) from 27.5% to 16.5%. The US Department of Agriculture (USDA) expects the lowering of duty to result in a 'further increase' in soyabean oil imports by India. Although its market is dominated by Argentina, 'the reduced tariff can boost the import of US soyabean oil,' a USDA report, dated June 10, has stated. All this would mean imports likely hitting a new high in the current fiscal, even as the USDA has projected a record-breaking global vegetable oil output of 235 mt for 2025-26, led by palm (80.7 mt) and soyabean (70.8 mt). And that may not be good news for farmers like Lodhi. The Soyabean Processors Association of India has expressed concern over the 11-percentage points duty cut, which is expected to 'flood the Indian market with cheaper imported oils'. That will make oilseed cultivation less attractive to farmers, who may sow less area and switch to other more profitable crops in this kharif season, said Davish Jain, chairman of the Indore-based association. Harish Damodaran is National Rural Affairs & Agriculture Editor of The Indian Express. A journalist with over 33 years of experience in agri-business and macroeconomic policy reporting and analysis, he has previously worked with the Press Trust of India (1991-94) and The Hindu Business Line (1994-2014). ... Read More
United News of India
03-06-2025
- General
- United News of India
MoS Defence announces expansion of NCC by three lakh cadets
New Delhi, June 3 (UNI) Minister of State for Defence Sanjay Seth on Tuesday announced the planned expansion of National Cadet Corps (NCC) by three lakh cadets across the country. The Minister said this during the inauguration of the Special Joint State Representatives and Additional/Deputy Directors General (JS R&A/D) Conference of the National Cadet Corps (NCC) in Bhopal, a Defence Ministry statement said. Several states have already agreed and committed to fast-track the necessary training infrastructure for the planned expansion. Addressing the gathering, Sanjay Seth reaffirmed the NCC's role in nation-building and youth development. He highlighted recent initiatives including the inclusion of ex-servicemen as NCC instructors, providing new employment avenues for veterans and lauded the NCC's active involvement in national campaigns such as the Swachh Bharat Abhiyan, Naya Savera Scheme, and Nasha Mukti Abhiyan. He also congratulated the NCC Mount Everest Expedition team for their successful summit on May 18, describing it as a powerful example of cadet courage and resilience. Calling for continued centre-state collaboration, Seth urged states to fulfil their commitments towards manpower, infrastructure, and funding to support this historic expansion, reinforcing NCC's integral role in shaping the youth and securing the nation's future. Director General NCC Lt Gen Gurbirpal Singh outlined the Corps' achievements and roadmap ahead, with a focus on establishing robust training and camping infrastructure nationwide. He emphasised the goal of fostering greater youth participation and improving cadet performance.
