Capital market-linked stocks BSE and Central Depository Services Limited (CDSL) rebounded on Wednesday, July 9, after a sharp selloff in trade a day ago, after the market regulator clarified that it doesn't plan to link options leverage limits to cash positions.
According to a Reuters report Securities and Exchange Board of India said there was "no proposal under consideration to link options leverage limits to cash positions".
Sebi's comments come after its chairman, Tuhin Kanta Pandey, said that the regulator is stepping up surveillance to detect manipulation in derivatives trading.
BSE share price rose nearly 3% to ₹2,550 on the NSE today. At the same time, CDSL share price gained almost 1% to hit a high of ₹1,769.70. Despite this rise, both stocks are significantly lower after Sebi banned US trading firm Jane Street from accessing the Indian stock market, alleging manipulation of stock indexes.
In just four sessions since the Jane Street saga came to light on July 4, BSE stock price is down 11%. CDSL share price has meanwhile lost 2.5% during the same period.
Why did Sebi ban Jane Street?
Sebi’s order, which also included the seizure of $567 million in Jane Street’s funds, alleged that some of the firm’s trading strategies manipulated stock indexes, causing losses for retail investors on the opposite side of those trades.
(This is a developing story)