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India Gazette
11-07-2025
- Business
- India Gazette
DGGI Bengaluru Unit uncovers six shell companies with fraudulent invoices worth Rs 266 crore
New Delhi [India], July 11 (ANI): In a follow up operation connected with investigation of a case initiated in Bengaluru, the officers of Directorate General of GST Intelligence, Bengaluru Zonal Unit, carried out searches in over six premises in Delhi, and uncovered fraudulent invoices worth over Rs 266 crore, involving availment and passing on of fraudulent Input Tax Credit (ITC) of Rs 48 crore from the shell companies. The Ministry of Finance, in a statement, stated that the masterminds floated shell companies with no actual business activity, carried out circular trading to inflate turnover, listed one of the companies in the stock exchange and indulged in ITC fraud. Investigation revealed that four companies, with no business activity, have shown receipt of hundreds of crores worth of goods and services, the Finance Ministry statement stated. The investigation indicated that initially, the key mastermind was one of the CA/statutory auditors, who managed the transactions of these companies, the statement added. Further investigation revealed that the structure of entities and shareholding pattern, along with changes in the same, the CA/statutory auditor was acting as Director in a few of these shell companies at some point of time - clearly establishing the links behind the origin of the six shell companies. The Ministry's statement further added that during searches at the premises of these companies, original documents, such as invoices and seals, were found in the premises of the mastermind. According to the Ministry, the key mastermind of the case has been arrested. DGGI Bengaluru Zonal Unit has initiated a comprehensive investigation into this fraud, which has implications for innocent investors in listed companies. Having found such pattern of GST frauds by use of circular trading and fake ITC by listed companies, DGGI has shared specific inputs with SEBI in the recent past for initiating action under the SEBI Act, the Ministry's statement added. (ANI)
Mint
04-07-2025
- Business
- Mint
SEBI Jane Street scandal: How retail investors can protect themselves
The Securities and Exchange Board of India (SEBI) has recently cracked down on Jane Street, a US based trading giant. The crackdown is to do with alleged manipulation of Indian financial markets and profiting unfairly. The total profit garnered as per the SEBI report is of ₹ 36,502 crore. SEBI's interim order against Jane Street clearly reveals how expiry day trades can be engineered to distort and create complexities in index movements. This case highlights the very serious hidden risks retail investors face in the rapidly evolving, fast moving algorithm driven equity markets. Source: Sebi order link: (Page 10 of the SEBI order) The SEBI order charges Jan Street Group with the manipulation of equity indices. This has been done under SEBI Act Sections 11(1), 11(4), 11B(1), 11(D) and PFUTP Regulations. PFUTP stands for Prohibition of Fraudulent and Unfair Trade Practices. These provisions are discussed in order. Hence, as the case continues to unfold, here are five key takeaways for retail investors: 1. Big players can influence the market — Stay informed: Jane Street's alleged 'pump and dump' tactics on expiry days showcase how easily large trades distort market levels. Retail investors and traders must take note of this fact that indices may not always show a clear reflection of genuine market sentiment, even more so during high volatility periods such as derivatives expiry. 2. Don't blindly follow index movements: SEBI noted that Jane Street's actions gave a misleading and false sense of bullishness in Nifty50 and Bank Nifty. This highlights the need for retail investors to avoid impulsive trades based on sudden index fluctuations and instead use technical indicators or volume data to carefully check and validate trends. 3. Understand how expiry day manipulation works: The alleged rigging involved large scale strategic buying and selling to move index levels on expiry days, thus influencing option prices. That is why if you trade options be extremely cautious around expiry. Sudden moves may not be driven by fundamental market strength but by large institutional strategies. 4. Watch for SEBI advisories and warnings: Earlier SEBI had already warned Jane Street in February 2025. As a prudent retail investor in this case you should always keep an eye on such regulatory red flags. SEBI's website, circulars, notices, along with financial news can all cumulatively offer early warning signs about irregular market behaviour or risk in the equity markets. That is why consistent monitoring, reading and building knowledge is the best way to keep yourself safe in such an environment. 5. Regulators do act — But vigilance is key: This case highlights SEBI's increasing scrutiny of foreign entities along with the complex strategies deployed by them to make money in the Indian equity market. Given regulators act in sincere public interest, the onus is on investors to stay cautious, avoid FOMO i.e.,the fear of missing out, keep themselves away from greedy F&O trades and prioritise risk management to successfully navigate the complexities of the equity markets. Hence, the Jane Street case is a strong wake-up call for retail investors in the country who are busy with emotion based short term trading. Do keep this fact in mind, that in today's data-driven markets, knowledge, patience, and discipline matter more than chasing quick profits. Disclaimer: The views expressed in this article are for informational purposes only and do not constitute financial or investment advice. Readers are advised to consult with a certified financial advisor before making any investment decisions.
Business Upturn
04-07-2025
- Business
- Business Upturn
SEBI cracks down on Jane Street: How the global trading giant allegedly manipulated India's derivatives market
By Aditya Bhagchandani Published on July 4, 2025, 10:07 IST Between January 2023 and March 2025, global trading powerhouse Jane Street Group allegedly orchestrated a sophisticated, high-frequency strategy that India's market regulator SEBI has now labelled manipulative and unlawful. According to SEBI, Jane Street made an estimated ₹4,843 crore in unlawful profits as part of ₹43,289 crore earned in India during this period. Here's what SEBI uncovered and why it acted decisively. Multiple entities, one coordinated strategy Jane Street operated in India through three Foreign Portfolio Investors (FPIs): Jane Street Asia Trading Limited (JSATL) Jane Street India Trading Private Limited (JSITPL) Jane Street Asia LLC (JSALLC) Though registered as separate entities, SEBI's probe revealed that these firms acted as a single group under common control. Their trades were synchronized with near-perfect timing, raising red flags about collusion. Mirror trades without real risk The investigation found these entities routinely took opposite positions in index derivatives, particularly in Nifty and Bank Nifty futures and options. For example, one Jane Street entity would buy a contract while another simultaneously sold it — at the same price and same time. Many of these trades were reversed within seconds, with no meaningful market exposure. These were not legitimate hedging or liquidity moves but paired trades designed to subtly move prices or stabilize levels that favored Jane Street's book. Expiry-day price manipulation SEBI also flagged expiry-day tactics, where Jane Street allegedly placed large, coordinated orders in the final minutes of trading on monthly and weekly expiry days. Since settlement is based on closing prices, even slight, well-timed movements could significantly benefit their existing positions. SEBI concluded that these actions were intended to manipulate expiry levels in Jane Street's favor. Circular trading and artificial volumes The firm also engaged in circular trading, generating false market activity by executing back-to-back trades between its own accounts. These trades created an illusion of demand and liquidity — misleading other participants and distorting true market conditions. The regulatory response SEBI ruled that these practices distorted prices and manipulated settlement outcomes, resulting in unlawful gains of ₹4,843 crore, which the firm must deposit into an escrow account. In addition: Jane Street and its entities have been barred from accessing the securities market until further notice. Bank accounts linked to these entities are frozen , with withdrawals restricted without SEBI's permission. The firm must close all open positions within three months or by their contractual expiry — whichever is earlier. The legal provisions invoked SEBI cited violations of: Section 12A(a), (b), and (c) of the SEBI Act. Regulations 3 and 4 of the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations. This decisive action sends a clear message: even the most sophisticated global players cannot manipulate Indian markets with impunity. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Economic Times
02-07-2025
- Business
- Economic Times
Sebi opens 6-month special window for investors to re-lodge rejected physical share transfer deeds
Sebi has opened a six-month window from July 7, 2025, for investors to re-lodge rejected share transfer deeds lodged before April 1, 2019. It also mandated a Common Contract Note with single VWAP to simplify post-trade processes for institutional investors. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads In a major relief for investors who missed the deadline to re-lodge transfer deeds for physical shares , the Securities and Exchange Board of India (Sebi) has announced a six-month special window from July 7, 2025, to January 6, 2026, allowing shareholders to re-lodge transfer documents that were lodged before April 1, 2019, but rejected or returned due to move comes after SEBI received numerous representations from investors, Registrars and Transfer Agents (RTAs), and listed companies highlighting that many shareholders were unable to meet the earlier cut-off date of March 31, consultations with a Panel of Experts, Sebi decided to offer another opportunity to protect investors' rights and facilitate ease of this special window, all re-lodged securities — including pending requests with companies or RTAs — must be issued only in dematerialised form. Listed companies and RTAs are required to ensure proper processing of these transfer-cum-demat requests in compliance with Sebi SEBI has directed listed companies, RTAs, and stock exchanges to actively publicise the special window every two months across print and social media to reach affected teams must be set up by RTAs and listed firms to handle these requests, and detailed monthly reports covering publicity efforts and re-lodged shares must be submitted to initiative, issued under the powers granted to SEBI by the SEBI Act and relevant regulations, aims to protect investors' interests and ensure the orderly transition from physical to dematerialized securities, furthering the regulator's efforts to modernize and secure India's capital another news, the market regulator mandated the use of a Common Contract Note (CCN) with a Single Volume Weighted Average Price (VWAP) effective June 27, 2025. This move comes with a view to simplify post-trade processes and boost ease of doing business for institutional now, institutional investors and market participants were burdened with separate trade confirmations from each exchange, leading to cumbersome reconciliation, settlement complexities, and increased compliance to long-standing demands from industry stakeholders, regulators, in collaboration with exchanges and clearing corporations, developed a single consolidated contract note mechanism with a uniform VWAP.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
02-07-2025
- Business
- Time of India
Sebi opens 6-month special window for investors to re-lodge rejected physical share transfer deeds
In a major relief for investors who missed the deadline to re-lodge transfer deeds for physical shares , the Securities and Exchange Board of India (Sebi) has announced a six-month special window from July 7, 2025, to January 6, 2026, allowing shareholders to re-lodge transfer documents that were lodged before April 1, 2019, but rejected or returned due to deficiencies. The move comes after SEBI received numerous representations from investors, Registrars and Transfer Agents (RTAs), and listed companies highlighting that many shareholders were unable to meet the earlier cut-off date of March 31, 2021. Following consultations with a Panel of Experts, Sebi decided to offer another opportunity to protect investors' rights and facilitate ease of investing. During this special window, all re-lodged securities — including pending requests with companies or RTAs — must be issued only in dematerialised form. Listed companies and RTAs are required to ensure proper processing of these transfer-cum-demat requests in compliance with Sebi regulations. Additionally, SEBI has directed listed companies, RTAs, and stock exchanges to actively publicise the special window every two months across print and social media to reach affected investors. Live Events Dedicated teams must be set up by RTAs and listed firms to handle these requests, and detailed monthly reports covering publicity efforts and re-lodged shares must be submitted to SEBI. This initiative, issued under the powers granted to SEBI by the SEBI Act and relevant regulations, aims to protect investors' interests and ensure the orderly transition from physical to dematerialized securities, furthering the regulator's efforts to modernize and secure India's capital markets. In another news, the market regulator mandated the use of a Common Contract Note (CCN) with a Single Volume Weighted Average Price (VWAP) effective June 27, 2025. This move comes with a view to simplify post-trade processes and boost ease of doing business for institutional investors. Until now, institutional investors and market participants were burdened with separate trade confirmations from each exchange, leading to cumbersome reconciliation, settlement complexities, and increased compliance headaches. Responding to long-standing demands from industry stakeholders, regulators, in collaboration with exchanges and clearing corporations, developed a single consolidated contract note mechanism with a uniform VWAP.
