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News Topical, Digital Desk : Zerodha co- founder Nitin Kamat on Friday expressed serious concern about the Indian capital market through a post on social media platform X ( earlier Twitter ) . He said that the extent of market dependence on large trading firms like Jane Street will be revealed in the coming days . SEBI ( Securities and Exchange Board of India) has temporarily barred Jane Street and its associated companies from trading in the derivatives market . SEBI alleges that the company made a profit of more than Rs 36,000 crore by manipulating derivatives trading between January 2023 and March 2025 . After this action, the shares of broker and exchange companies declined in the stock market on Friday . Shares of Nuvama Wealth fell by 12 percent , while BSE and Angel One fell by 6 percent and CDSL by 2.5 percent .
Retail trading may also be affected
Kamat wrote that prop trading firms like Jane Street handle about 50 percent of the options trading volume and if these firms withdraw from the market, it may also affect retail trading , which is about 35 percent of the total volume . This will not only harm the exchanges but also the broker companies.
However, he praised SEBI 's action and called it a courageous step and said that the action taken by SEBI on Jane Street must be appreciated . If the allegations are true, then this is clearly a case of open market manipulation . He also said that in countries like America, systems like ' dark pools ' and 'payment for order flow ' are common, which hedge funds take advantage of, but in India our regulators did not allow this to happen , which is worthy of praise .
Direct impact on liquidity and volume of the options market
At the same time, Jane Street has challenged these allegations of SEBI and said that they will talk to the regulator on this issue . Experts believe that if the participation of big firms like Jane Street is limited, it will have a direct impact on the liquidity and volume of the options market , which can cause losses to broker companies and common investors. In such a situation, the coming days can prove to be very important for the Indian stock market.
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