In just 1 month, the investors in BSE and NSE have seen Rs 1.4 Lakh crore wiped out of the stock market. This was mainly due to the Jane Street Scandal, Regulatory Actions on F&O trading, declining derivatives volume and negative reports.BSE shares are now in a bear market.
The BSE Listed Price declined by more than 20% from its June all-time high of Rs 3,005 to Rs 2,371 on 11th July.
The NSE Shares were trading around Rs 2375 in June 25, which declined by 10% to Rs 2,175. Currently, the NSE unlisted shares are trading around Rs 2,263 per share.
What Is The Jane Street Ban?
Earlier in July 1st week, the Securities and Exchange Board of India (SEBI) temporarily barred Jane Street Group from accessing India's securities market. The U.S.-based firm was accused of doing heavy market manipulations. According to the SEBI's order, “entities are restrained from accessing the securities market and are further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly.”
Jane Street allegedly used different ways to artificially influence India’s benchmark Nifty 50 index, which tracks the country’s top 50 companies and profit from significantly larger positions in index options.
SEBI also released an interim order to freeze Rs 48.4 billion ($566.3 million) from Jane Street in alleged illegal gains. Banks were directed “no debits are made, without permission of SEBI,” for accounts held by Jane Street’s entities either jointly or individually.
SEBI Attempted To Protect Retail Investors
SEBI noted that repeated instances of manipulative trading continued on the Nifty 50 benchmark even after an "explicit advisory" was issued to Jane Street by the NSE in February 25. The regulator said "Such egregious behaviour, in clear disregard/ defiance of the explicit advisory issued to them by NSE in February 2025, amply demonstrates that unlike the vast majority of Foreign Portfolio Investors and other market participants, [Jane Street] Group is not a good faith actor that can be, or deserves to be, trusted”'
“The integrity of the market, and the faith of millions of small investors and traders, can no longer be held hostage to the machinations of such an untrustworthy actor,” SEBI added. By the time SEBI came, retail traders already faced heavy losses.
Retail Traders Face Heavy Losses
SEBI's latest data reveals that retail investors lost Rs 1.05 lakh crore in F&O trading in FY25. The individual traders grew from 86.3 lakh in FY24 to 96 lakh in FY25, but average losses rose by 27%. Among all these things, SEBI's order on May 26 for limiting expiry to Tuesdays or Thursdays further led to a limit in volumes, reducing investor activity.
All these factors directly contributed to BSE and NSE shares falling in the last 1 month. The SEBI investigation is underway.
Investors Must Stay Cautious
In times when market trust is significantly harmed, investors must take care to check all the indicators before putting their money. SEBI is taking the necessary steps to avoid such mishappenings which directly affect the shareholder wealth. On a larger timeframe, the investor trust in BSE and NSE will remain intact.
