He believes the market is resilient enough to withstand the exit of any single player, including a large global firm like Jane Street.
What is the Jane Street controversy?
Jane Street is a well-known proprietary trading firm based in the U.S., active in more than 45 countries. Sebi recently accused the firm of manipulating stock and index prices in India to benefit its options trades. According to the regulator, Jane Street made significant profits by first buying stocks to push prices up and then selling them off later in the day to profit from falling prices in the options segment.
Sebi has frozen over Rs 4,800 crore in profits linked to these trades and banned Jane Street and its India arm from participating in the market. The regulator has also frozen their bank and demat accounts as part of an ongoing investigation.
India’s markets remain strong
Reacting to the SEBI order, Angel One’s Dinesh Thakkar said that while the Jane Street episode has raised concerns about proprietary trading, it should not be viewed as a threat to the broader Indian market.
“Retail participation in equity derivatives has grown from just 2% in 2018 to over 40% in 2025,” Thakkar noted, highlighting the growing role of Indian investors in deepening the market. “This growth in retail trading adds liquidity, increases activity, and creates opportunities for all types of traders.”
He added that India’s market momentum is “structural, not cyclical,” driven by long-term factors such as political stability, rising domestic consumption, favorable demographics, and stable inflation.
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Global trading firms still entering India
Thakkar also pointed out that the exit of one player doesn’t leave a gap for long. Several international trading giants like Citadel Securities, Jump Trading, Optiver, IMC, and Millennium are expanding in India—setting up offices, hiring local talent, and investing in infrastructure.
“When one player exits, others step in—and often, very fast,” Thakkar said.
SEBI’s action strengthens the market
Thakkar welcomed SEBI’s crackdown, calling it a step toward stronger compliance and better governance.
“India’s markets are built on transparency and investor protection. SEBI’s action raises the bar for everyone and helps strengthen market integrity,” he added.
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While Jane Street has the right to challenge SEBI’s order and present its case, the firm remains barred from trading in India for now. Stock exchanges have also been asked to monitor for similar trading patterns in the future.
For market participants and retail investors, the key takeaway is clear: India’s capital markets remain robust, with growing participation, increasing oversight, and long-term growth potential.
“The players may change,” Thakkar said, “but India’s capital markets will continue to deepen, diversify, and grow.”
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
