SEBI Action; Investors Lose 1.4 Lakh Crores

The Indian stock market has been witnessing a significant decline over the past few days. The main reason behind this is the stringent action taken by the Securities and Exchange Board of India (SEBI) against the American trading company Jane Street Group. Following this action, there has been a substantial decline in the shares of major stock exchanges BSE (Bombay Stock Exchange) and NSE (National Stock Exchange), resulting in investor losses amounting to a whopping 1.4 lakh crore rupees.

On July 3, SEBI banned Jane Street from trading in India and froze assets worth 4,840 crore rupees. The trading firm is accused of irregular intervention in the Nifty Bank index. This has created an atmosphere of uncertainty in the market, and a decline is being recorded in derivatives (F&O) transactions. Against this backdrop, many brokerage firms have downgraded ratings on BSE and NSE.

Review of Share Price Decline

According to Economic Times, on June 10, BSE shares were at 3,030 rupees, which have now reached approximately 2,376 rupees. This has resulted in a decrease of nearly 26,600 crore rupees in BSE's market capitalization. On the other hand, although NSE shares are not yet listed, the primary market price has fallen from 2,590 to 2,125, with an estimated loss in the range of 1.15 lakh crore rupees.

Impact of SEBI Regulations

The impact of the stringent regulatory policies implemented by SEBI in November 2024 is now clearly evident. According to the statistics from December 2024 to May 2025, there has been a 29% decline in turnover in derivatives transactions. The number of retail and active traders has also significantly decreased. Although Jane Street has only a 1% share in BSE transactions, it is anticipated that regulatory changes and changes in expiry dates could lead to a 10-12% drop in volume.