The Jane Street Glitch
Pesawala Digest explores The Jane Street Controversy and the Perils of F&O Trading for Retail Investors. Jai Mata Di. Let's dive in. SEBI vs Jane Street A Landmark Case of Clash Over Market Fairness and Investor Protection Jane Street versus SEBI was a landmark regulatory action in India’s capital markets, involving allegations of large-scale market manipulation by a global quant trading firm. Pesawala Digest unpacks the saga, its legal and ethical implications, and explains why F&O and intraday trading pose outsized risks for everyday investors. Genesis of the Dispute The dispute began in April 2024 when SEBI, triggered by media reports of legal wrangling between Jane Street and Millenium Management in the U.S., started scrutinizing Jane Street’s trading activity in India. The initial investigation was prompted by concerns that Jane Street’s proprietary trading strategies, which generated remarkable profits in U.S. markets, had found unauthorized use and possibly misappl...
