July 4, 2025: Market Shares of several service providers, including BSE, Edelweiss Financial Services, Angel One, Central Depository Services (CDSL), and Motilal Oswal Financial Services, fell by up to 6% in intraday trading following regulatory action from the Securities and Exchange Board of India (SEBI).
The decline comes after SEBI barred Jane Street Group and its associated entities from participating in Indian markets, a move that spooked investors and triggered a selloff in stocks with exposure to capital markets and trading infrastructure.
Jane Street, a prominent global proprietary trading firm known for high-frequency trading and liquidity provision, was reportedly under scrutiny for alleged violations in its India operations. While specific details of the violations remain confidential, SEBI’s interim order has sent shockwaves through the trading community.
Market participants expressed concern over the ripple effects this might have on foreign investor sentiment and the broader trading ecosystem in India.
Analysts noted that the drop in share prices reflects short-term panic selling and uncertainty over potential regulatory tightening in the market infrastructure and trading ecosystem sector.
More details are expected once SEBI publishes the full findings of its investigation.