The Securities and Exchange Board of India is planning a big push on investor safety and risk-based rules after cracking down on US trading firm Jane Street Group.
The market regulator will launch a major public campaign on cyber frauds and risks in futures and options, Chairman Tuhin Kanta Pandey said on Saturday.
"One-size-fits-all rules are not suitable for all investors," Pandey said at an event organised by the Bombay Chartered Accountants Society. "In the past, SEBI has seen egregious behaviour, including siphoning of funds. It has taken serious action, including barring those found guilty from the capital markets," he said.
Pandey said the regulator is mindful that excessive disclosures and compliance can become a burden for stakeholders. The markets watchdog wants to avoid micromanagement and reduce unnecessary regulatory interference, he said.
In an interim order against Jane Street on Friday, the SEBI directed the impounding of Rs 4,846 crore in alleged unlawful gains from F&O trades and barred entities from the Indian securities market. The New York hedge fund earned Rs 43,289 crore in profits through trading in index options on Indian exchanges between Jan. 1, 2023, and March 31, 2025.
Pandey said surveillance has been increased both by the regulator and at the exchange level. When asked if similar patterns have been seen with other foreign portfolio investors as well, Pandey said, "All what I can say that market manipulation is not going to be tolerated."
NDTV Profit has reported on SEBI's major nationwide investor education campaign. Whole-Time Member Kamlesh Varshney confirmed that investor awareness will be the regulator's "next big mission" and a detailed plan is being developed in partnership with state governments and other stakeholders.
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