Jane Street Scandal and F&O Cleanup Costs BSE & NSE Investors Rs 1.4 Lakh Crore in Market Cap
BSE and NSE investors have collectively lost Rs 1.4 lakh crore in market value following SEBI’s regulatory crackdown on Jane Street and a downturn in the Futures & Options segment, triggered by trading bans, frozen assets, and analyst downgrades
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Indian investors in BSE and NSE have endured staggering losses totaling approximately Rs 1.4 lakh crore in market capitalization since June, triggered by the Jane Street scandal and SEBI’s sweeping regulatory actions in the Futures & Options (F&O) segment.
The turmoil intensified after SEBI’s July 3 order sidestepped Jane Street—accusing it of orchestrating a “well‑planned and sinister scheme” to manipulate the Bank Nifty by freezing Rs 4,840 crore in assets and imposing a trading ban. This led to a sharp contraction in derivatives turnover, dropping nearly 20%, and triggered downgrades on exchange stocks.
Impact Highlights:
BSE shares plunged over 22%, knocking off Rs 26,600 crore in value.
NSE has lost ₹1.15 lakh crore, with shares falling around 18%.
F&O markets saw turnover dip ~21% on expiry days, with index options trading dropping significantly.
Retail traders experienced record losses estimated at ₹1.05 lakh crore in FY 2025.
Analysts flag that further regulatory tightening is likely, potentially including restrictions around weekly expiry days. This uncertainty is impacting near‑term volumes and could pressure exchange valuations.
Outlook & Industry Response:
SEBI is reviewing Jane Street's request to lift the ban, now that ₹4,843 crore has been deposited in escrow. However, until the case is resolved, heightened surveillance and volatility will likely persist, keeping markets under pressure.
