The Securities and Exchange Board of India (Sebi) has recently taken action against the global trading firm Jane Street which has triggered significant conversations around the Indian stock market and how it functions.
Uday Kotak, the billionaire banker said while commenting on the development that the primary role of market is to promote capital formation and fair price discovery.
“Recent stock market actions signify 3 aspects: money power, low liquidity in single stocks vs. index derivatives, exchange, broker business models linked to volume, less to fundamentals,” Kotak, the founder of Kotak Mahindra Bank wrote in his post on X on Saturday.
During the early hours of Friday, Sebi had released an order where the market regulator found Jane Street, which is a US-based trading firm, guilty of manipulating the indices by taking bets in the cash, and, futures and options markets simultaneously for making hefty gains.
This is the reason for which Sebi has banned Jane Street from accessing the Indian stock market and has seized Rs 4,843 crore in gains.
According to the market regulator’s probe, Jane Street has made a profit of Rs 36,671 crore on a net basis during the probe period from January 2023- May 2025.