In a striking case of market manipulation, global trading giant Jane Street allegedly orchestrated a sophisticated strategy to profit from the Indian derivatives market, likened by experts to a "rigged IPL match." Through Indian-linked entities, the firm drove up Bank Nifty stock prices on expiry Thursdays—only to later dump them, causing sharp market falls and reaping huge gains from pre-purchased Put Options.
This calculated tactic resulted in over ₹43,000 crore in profits across multiple expiry days, according to SEBI’s interim findings. The fallout was harshest for retail investors, 93% of whom lost money during these events. Many were unaware of the invisible forces moving the market, and worse, some received income tax notices due to incorrect reporting of their F&O losses—while Jane Street paid no Indian tax, using treaty loopholes through Singapore and Mauritius.
The saga highlights deep vulnerabilities in India’s financial system—both in market regulation and tax administration. It underscores the urgent need for tighter surveillance, smarter tax tools, and greater awareness among traders. Ultimately, this episode wasn’t just about financial losses; it was about the erosion of trust in the fairness of India’s capital markets.
For Indian investors, the key takeaway is clear: in an arena where global algorithms dominate, knowledge and caution remain the best defense.
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