Stocks of Nuvama Wealth, Angel One, BSE tumble amid Jane Street controversy

New Delhi, Jul 4 (PTI) Shares of stockbroking firms such as Nuvama Wealth, Angel One, leading stock exchange BSE, and depository CDSL saw sharp declines on Friday amid concerns of potential business impact following a regulatory crackdown.

Markets regulator Sebi has barred US-based Jane Street Group from the securities markets and directed the group to disgorge unlawful gains of ₹4,843 crore for allegedly manipulating stock indices through positions taken in derivatives segment.

This could be the highest disgorgement amount ever directed by the Securities and Exchange Board of India (Sebi).

Shares of Nuvama Wealth Management tanked 11.26 per cent to settle at ₹7,263.10 on the BSE. During the day, it fell sharply by 12 per cent to ₹7,202.25.

The BSE has sought clarification from Nuvama Wealth Management Ltd on Friday, with reference to news quoting “Jane Street effect: Nuvama shares slump 7 per cent after Sebi order. What’s the connection?”

Other stocks that also faced selling pressure was stockbroking firm Angel One that dropped 5.94 per cent.

Shares of BSE tumbled 6.42 per cent and Central Depository Services (India) Ltd declined 2.29 per cent on the NSE.

“Investor sentiment was dented following Sebi’s interim ban on US-based Jane Street for alleged manipulation in equity derivatives. Shares of platforms exposed to foreign trading activity — including Nuvama Wealth, Angel One, BSE, and CDSL — saw sharp declines amid fears of potential business impact following the regulatory crackdown,” Gaurav Garg, Analyst, Lemonn Markets Desk, said.

In its interim order, the regulator has debarred JSI Investments, JSI2 Investments Pvt Ltd, Jane Street Singapore Pte Ltd, and Jane Street Asia Trading — entities collectively referred to as the Jane Street Group — from trading until further notice, while continuing its investigation.

Established in 2000, Jane Street Group LLC is a global proprietary trading firm in the financial services industry. It employs more than 2,600 people across five offices in the US, Europe, and Asia, and conducts trading operations in 45 countries.

“Capital market stocks were under pressure following Sebi’s market-wide ban on global trading firm Jane Street,” Siddhartha Khemka, Head, Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.