Jane Street Fallout: Nuvama Wealth and Other Capital Market Stocks Plunge 5-7% After SEBI Crackdown

Shares of capital market stocks took a beating on July 4 after India’s market watchdog, the Securities and Exchange Board of India (SEBI) barred Jane Street from the Indian equity markets.

At the center of the aftermath were shares of Nuvama Wealth Management that took the sharpest blow and plunged nearly 7% in trade today. Nuvama Wealth is the domestic trading partner for Jane Street, the major reason behind investors dumping the stock.

The sharp selloff comes at the heels of Sebi’s interim order that accused Jane Street of making unlawful gains of ₹4,843 crore, ($570 million) from the Indian securities market by executing manipulative trades. Further, Sebi also said that it would seize the gains made by Jane Street through these unlawful trades, also directing Indian banks to restrict any debits from the group's accounts without prior regulatory approval.

Sebi had been investigating Jane Street over concerns around a manipulative trading strategy. According to Sebi, Jane Street executed a series of trades on the Nifty Bank and Nifty 50 indices between August 2023 and May 2025 that were aimed at distorting closing prices, particularly around expiry dates of derivative contracts.

These tactics included intra-day index manipulation and a trading strategy describes as “extended marking the close,” a method where large, aggressive trades during closing hours, influence the final settlement prices. Sebi’s investigation reveals multiple instances of Jane Street orchestrating the manipulative strategy.

The strategy raised eyebrows among market participants who alleged manipulation by the US trading house, prompting Sebi to take up an investigation into Jane Street.

This came as a huge blow to Nuvama, more so because Jane Street was likely a big client for the company, having made more than $2.3 billion in net revenue from equity derivatives in the South Asian nation last year.

The sour sentiment for Nuvama Wealth also seeped into other capital market-related stocks as well. While other major players like Angel One, BSE, and CDSL tanked 3-6%, the broader Nifty Capital Markets index plunged 2%.