SEBI Member Stresses Importance of Cash Equities Market, Questions Short-Term Derivatives

1 min read     Updated on 17 Jul 2025, 11:43 AM
scanxBy ScanX News Team
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Overview

A Securities and Exchange Board of India (SEBI) member has highlighted the critical need to strengthen the cash equities market. The official noted that short-term derivatives do not contribute to capital formation, suggesting a potential shift towards encouraging long-term investment strategies. This focus may lead to initiatives aimed at developing the primary market for equities, including easier capital raising for companies and more opportunities for investor participation in IPOs and FPOs.

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*this image is generated using AI for illustrative purposes only.

A member of the Securities and Exchange Board of India ( BSE ) has recently emphasized the critical need to strengthen the cash equities market, highlighting a potential shift in focus for India's capital markets.

Cash Equities Market in Focus

The SEBI member's statement underscores the regulator's concern about the current state of the cash equities market and its importance in the overall financial ecosystem. This emphasis suggests that SEBI may be considering measures to boost participation and liquidity in this segment of the market.

Short-Term Derivatives Under Scrutiny

In a notable observation, the SEBI member pointed out that short-term derivatives do not contribute to capital formation. This statement raises questions about the role and impact of these financial instruments in the broader context of India's capital markets.

Implications for Long-Term Investment

The focus on strengthening the cash equities market, coupled with the critique of short-term derivatives, indicates a potential push towards encouraging long-term investment strategies. This approach aligns with the goal of sustainable capital formation and could have significant implications for both retail and institutional investors.

Development of Primary Markets

The SEBI member's comments also hint at a renewed focus on developing the primary market for equities. This could lead to initiatives aimed at:

  • Facilitating easier capital raising for companies
  • Providing more opportunities for investors to participate in initial public offerings (IPOs)
  • Encouraging participation in follow-on public offerings (FPOs)

Conclusion

As these developments unfold, market participants, including investors, traders, and listed companies, will need to closely monitor any regulatory changes or initiatives that may arise from SEBI's current stance on cash equities and derivatives markets. The potential shift in focus could have far-reaching implications for India's capital markets landscape.

Historical Stock Returns for BSE

1 Day5 Days1 Month6 Months1 Year5 Years
+1.07%+0.09%-8.18%+32.76%+246.20%+4,425.66%

BSE Shares Tumble 4% as SEBI Expands Jane Street Probe to Sensex Options

1 min read     Updated on 11 Jul 2025, 03:04 PM
scanxBy ScanX News Team
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Overview

BSE Ltd's shares declined 4% following news that SEBI is expanding its investigation into alleged index manipulation by Jane Street to include Sensex options. The probe, initially focused on Nifty and Bank Nifty weekly options, now encompasses a wider range of Indian stock indices. SEBI has already barred Jane Street from the Indian market and ordered the firm to deposit Rs 4,843.50 crore in alleged illegal gains. This expanded investigation aims to ensure market integrity across all major indices.

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*this image is generated using AI for illustrative purposes only.

BSE Ltd , the operator of the Bombay Stock Exchange, saw its shares decline by 4% following news that the Securities and Exchange Board of India (SEBI) is expanding its investigation into alleged index manipulation by Jane Street. The regulatory body is now including Sensex options in its probe, which was initially focused on Nifty and Bank Nifty weekly options.

Widening Scope of Investigation

The expansion of SEBI's investigation to include Sensex options marks a significant development in the ongoing probe against Jane Street, a global trading firm. This move suggests that the regulator is casting a wider net to examine potential market manipulation across multiple Indian stock indices.

Impact on BSE Ltd

The news of the expanded investigation has had an immediate impact on BSE Ltd's stock price, with shares dropping 4% in response to the announcement. This decline reflects investor concerns about the potential implications of the probe on the exchange's operations and reputation.

SEBI's Actions Against Jane Street

SEBI has already taken strong action against Jane Street in connection with the ongoing investigation:

  • The regulator has barred Jane Street and related entities from participating in the Indian market.
  • SEBI has ordered Jane Street to deposit alleged illegal gains amounting to Rs 4,843.50 crore.

Implications for Market Integrity

This expanded investigation underscores SEBI's commitment to maintaining the integrity of Indian financial markets. By scrutinizing the trading activities in Sensex options, the regulator aims to ensure fair and transparent market operations across all major indices.

The outcome of this investigation could have far-reaching consequences for market participants and may lead to enhanced regulatory measures to prevent index manipulation in the future.

As the investigation unfolds, market participants and investors will be closely watching for any further developments that could impact BSE Ltd and the broader Indian stock market landscape.

Historical Stock Returns for BSE

1 Day5 Days1 Month6 Months1 Year5 Years
+1.07%+0.09%-8.18%+32.76%+246.20%+4,425.66%
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