Ever felt like expiry day moves are too wild to be real? Like someone’s hunting stop-losses?
Turns out, someone was.
SEBI just caught Jane Street allegedly manipulating BANKNIFTY to make crores.
🧵This is how they turned India’s market into an options casino.👇
Jane Street is a giant U.S. Quant Trading Firm (founded 2000, ~2,600 employees) known for lightning-fast, algorithm-driven trades across global markets.
In December 2020 it expanded into India, setting up 2 Indian arms and 2 foreign affiliates.
Unlike long‐term investors, these traders run massive, short-term positions in stocks, futures and options.
By mid-2024, SEBI noticed something strange. Media reports about a New York lawsuit hinted that a big quant firm had a very profitable India strategy.
On June 6, 2025, the RBI dropped a monetary policy surprise announcing a 50BPS cut in the repo rate bringing it down to 5.50% and a 100 BPS reduction in the Cash Reserve Ratio to 3%.
That’s a big move! So, what does it mean for the economy and you?
Let's dig in! 👇
This frees up about ₹2.5L crore in bank liquidity and lowers the RBI’s lending rate to banks.
The RBI also shifted its policy stance to “Neutral” from “Accommodative” having eased aggressively, the central bank signaled it will now watch incoming data before cutting further.
Key Policy Highlights:
1. Repo rate: Cut by 50 bps to 5.50%, the lowest in 3 years.
2. CRR: Cut by 100 bps to 3% of deposits, to be phased in over coming quarters.
3. Stance: Changed to “Neutral”, implying RBI is done with front-loaded cuts and will be data-dependent.