SEBI Bans Jane Street Over Derivatives Scam; Nuvama Share Price Falls 11% - Is There A Connection?

Shares of Nuvama Wealth Management Ltd. slumped over 11% on Friday as investors reacted to a major regulatory crackdown by SEBI against Jane Street Group, the US-based global trading firm linked to Nuvama as its domestic partner in India.

On the NSE, Nuvama stock opened at Rs 7,940.00 and dropped to an intraday low of Rs 7,280.50. By 1:10 pm, it was trading at Rs 7,350.00, down 825.50 pts or 10.10%.

Nuvama Wealth Management Share Price Today

On the BSE, the stock opened at Rs 8,100.00 and fell to a low of Rs 7,285.00. At the same time, it was quoted at Rs 7,344.35, down 840.25 pts or 10.27%.

SEBI’s 105-Page Order: Jane Street Banned, Funds Seized
The Securities and Exchange Board of India (SEBI) issued a 105-page interim order on July 3, barring Jane Street Group and its affiliates from accessing the Indian securities market, accusing them of manipulating benchmark indices like the Nifty 50 and Bank Nifty through high-frequency derivative trades.

“The entities are restrained from accessing the securities market and are further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly,” SEBI said in its order.

SEBI ordered the impounding of Rs 4,840 crore in allegedly unlawful gains and instructed banks to freeze all debit transactions from accounts linked to Jane Street—including JSI Investments Pvt Ltd, Jane Street Singapore Pte Ltd, and Jane Street Asia Trading Ltd.

According to SEBI, Jane Street earned Rs 36,500 crore in net profits from the Indian market between January 2023 and March 2025, with Rs 43,289 crore coming from index options trades alone, based on NSE data.

Why Nuvama Got Dragged Into the Selloff
While Nuvama Wealth Management was not directly named or accused in SEBI’s order, its known association with Jane Street as a domestic trading partner was enough to trigger market jitters.

Nuvama had previously responded to an NSE probe into Jane Street’s trades, which the exchange concluded in May. However, SEBI chose to pursue a deeper, independent investigation resulting in the current ban.

How much money did Jane Street make?
SEBI’s analysis (Jan 2023 to Mar 2025) found:
Total profit: Rs 36,502 crore
Profit from index options alone: Rs 43,289 crore
Losses in other segments (stocks/futures): Rs 7,687 crore
On one single day—January 17, 2024—Jane Street made Rs 735 crore profit by using this strategy.

Who was affected?
SEBI pointed out that millions of small traders were unknowingly affected. For example, on Jan 17, 2024:
Just 4,675 entities traded in BANKNIFTY stocks
But over 16 lakh traders traded BANKNIFTY options
These traders relied on index movements (driven by cash and futures markets) to decide their trades. But SEBI says Jane Street manipulated those signals, misleading the entire options market.

Read More -'Committed To Compliance,' Says Jane Street After SEBI Ban

Jane Street Response To SEBI 

In an emailed statement, Jane Street said it "disputes the findings" of the SEBI order and confirmed it would continue to engage with the regulator.

“Jane Street is committed to operating in compliance with all regulations in the regions we operate around the world,” the firm said as mentioned in the report by Reuters. 
 

What’s Next for Jane Street
The company now has 21 days to file objections or responses to SEBI’s order and can also challenge it before the Securities Appellate Tribunal. The interim ban will stay in place until SEBI concludes its full investigation and passes a final order.