Mumbai:Shares of Nuvama Wealth management plummeted over 10 per cent on Friday after the Securities and Exchange Board of India (SEBI) barred Jane Street, a US-based trading entity, from accessing the domestic equity market, asking them to deposit alleged illegal gains of Rs 4,843.5 crore in an account in favour of the market's regulator.
Nuvama Wealth Management is Jane Street's trading partner for Indian stock markets. Around 12:45 p.m., Nuvama Wealth shares were trading at Rs 7,408.50, down 9.45 per cent on the National Stock Exchange (NSE) compared to the previous day's closing price.
The scrip started trading in negative territory at Rs 7,940.0, falling Rs 235 against the last session's closing price of 8,175.50 on the exchange. Following the selling pressure after SEBI's action, the counter further nosedived to hit an intra-day low of Rs 7,280.50, a fall of over 10 per cent. Meanwhile, its 52-week high and low values stood at Rs 8,508.50 and Rs 4,600.0, respectively.
The market regulator also banned three other entities related to the US trading firms from accessing the market. It directed them to deposit gains of Rs 4,843.5 crore, which they have fetched following illegal option trading practices, to the markets regulator's account.
In its order, the regulator sought freezing of the bank accounts of these entities, including JSI2 Investments Private Limited, Jane Street Singapore Private Limited and Jane Street Asia Trading Limited.
According to the SEBI interim order, Jane Street earned Rs 43,289.33 crore by trading index options on Indian exchanges from January 1, 2023, to March 31, 2025.
As per the order, Jane Street bought large amounts of cash sector and Bank Nifty futures in the morning and sold large amounts of Bank Nifty options in the afternoon on 14 expiry days.
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