SEBI Jane Street Ban Triggers 7% Fall in BSE Share Price

In response to the buzz circling around the "Ban on Jane Street", BSE share price cracked over 7% in the trading session on Friday, 4th of July, 2025.

But, "Why did the Jane Street was banned by the Securities and Exchange Board of India?" 

Well, according to the SEBI, "Jane Street was allegedly accused of manipulating the market, making a high-frequency trade of Rs.4,844 crore Unlawfully."

Furthermore, by investigating thoroughly, it was discovered that Jane Street, a US-based trading firm bought a significant portion of the 12 Bank Nifty component stocks and their futures.

The intend of "Burst of buying" was to influence the prices of these securities, which in return allowed the firm to make a large sum of profits in the highly liquid index options.

As per the SEBI order, between January 2023 and March 2025, Jane Street earned Rs.44,358 crore in options, lost Rs.7,208 crore in stock futures, lost Rs.191 crore in index futures, and another Rs.288 crore in cash, pocketing an overall gain of Rs.36,671 crore during this period.

However, this ban on Jane Street will continue till a final order on completion of investigations is issued.

Why are BSE Shares Down?

After the declaration by the SEBI, "Marking Jane Street with making Rs.4,840 crore as unlawful gains earned from alleged misconduct”, the BSE share price slides over to 7% to the day's low of Rs.2,647.30 on the National Stock Exchange (NSE) in the morning trade today.

Mr G Chokkalingam, Founder & MD of Equinomics Research said, "The fear is that following the SEBI ban on Jane Street, F&O turnover will come down, and that is a trigger for BSE. There is already a noticeable decline in the F&O business — not just for BSE, but across the entire industry. Due to over-speculation and the fact that nearly 90% of participants are losing money, the overall sentiment has turned negative, which is also weighing on the stock."

Well, many Mutual Funds analysts see "This as a short-to-medium-term hit to derivatives volumes and BSE reaction and capital markets taking a largely knee-jerk."

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How Can You Trade BSE Stock Now?

Kunal Kamble, Sr. Technical Research Analyst at Bonanza, said BSE had been trading in a narrow range for the past eight sessions. Still, in today’s session, buyers gave up their positions, leading to profit booking and a sharp decline.

“Technically, the stock is now trading below the 9 and 21 EMAs, indicating that the minor trend has turned negative. Structurally, the stock is forming a Lower High, suggesting continued weakness in the secondary trend. On the momentum front, the RSI has slipped below 51, which reflects a loss of bullish momentum,” Kamble added.

He believes the stock may correct further toward the 50 EMA, placed around Rs.2,550. A sustained move above Rs.2,870 would be needed to rekindle short-term buying interest, Kamble noted.