Stocks of Nuvama, Angel One, BSE down after SEBI action against Jane Street

July 4, 2025 – Shares of key capital market firms took a hit on Friday after the Securities and Exchange Board of India (SEBI) imposed a market access ban on US-based quant trading firm Jane Street for alleged manipulation of the Indian securities market. Nuvama is the local trading partner of Jane Street in India. However it needs to be noted that there is no mention of Nuvama in the SEBI investigation. And Nuvama is in no way related to this investigation till now.

Nuvama Leads Declines Amid Fallout

Nuvama Wealth Management Ltd., Jane Street’s local trading partner, bore the brunt of the regulatory blow. Its stock plunged by as much as 6.7%, marking its steepest drop since May 5 this year. By 10:00 AM, Nuvama shares were down 4.7% compared to the previous close.

Broader Sentiment Hits Angel One, BSE, and CDSL

Angel One and BSE also suffered sharp declines. Angel One’s shares fell 7.3% intraday, while BSE dropped 6.1%. At the same time, shares of CDSL (Central Depository Services Ltd) declined by more than 2%. As of the latest update, Angel One was trading 5.5% lower and BSE was down by 3.9%, underperforming the Nifty50 benchmark, which dipped just 0.02%.

SEBI Orders Disgorgement of ₹4,844 Crore

According to SEBI’s interim order, Jane Street was found to have manipulated markets by building aggressive positions in index options and then influencing the prices of underlying low-volume Bank Nifty component stocks. The strategy allowed them to secure significant profits in the highly liquid derivatives market.

Between January 2023 and March 2025, Jane Street earned ₹44,358 crore in index options but incurred losses of ₹7,208 crore in stock futures, ₹191 crore in index futures, and ₹288 crore in cash equity. The net profit totaled ₹36,671 crore. SEBI has directed Jane Street to disgorge ₹4,844 crore identified as “unlawful” gains.

Angel One Feels the Pressure

In addition to the market reaction, Angel One reported operational weakness for the June 2025 quarter (Q1 FY26). Its futures and options (F&O) option premium turnover dropped 17.8% year-on-year to ₹13,500 crore. Meanwhile, total orders executed on the platform fell 25.8% to 343.11 million, and average daily orders declined 27% to 5.62 million. Client acquisition was also down 40% year-on-year, with 1.45 million new clients added during the quarter.

Outlook

While the direct regulatory action targets Jane Street, the broader fallout underscores market sensitivity to regulatory interventions in the high-frequency and derivative trading space. The response from investors suggests heightened caution, particularly toward firms with exposure to the affected segments.

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