American company rigging Indian stock market, investors lose 36,500 crore

Scam in stock market

SEBI has banned the American Trending Company Jane Street. The company is accused of manipulating Rs 36,500 crore from the market by manipulating Dalal Street. SEBI has just banned it. On completion of the investigation, the company can be completely banned. The Regulatory Board issued an interim order on the American company and ordered the seizure of illegal earnings of Rs 4,843 crore. Let us explain to you in detail that Jane tells the story of Street and also understand how the Global Trading Company has done such a big scam.

Jane Street is a high-frequency company in America. Which purchases shares and sells them in a very short time than seconds. Taking advantage of its technology, the company made a bag in the Indian market. For this, he chose futures and options and defrauded the investors for crores of rupees.

This is how scam

The Global Trading Company adopted two ways for the scam and scammed the first future and options trading and the cash market by raising the price of shares on the expiry date. Suppose a stock is trading for Rs 12,00, while a company named Jane Street first bought 10,000 lots in futures at a price of Rs 1,202. Also, a call option of Rs 1,220 of 10,000 lots at a price of Rs 3,220 was also taken. Then, the company increased the price of that share in the cash market. When the share price reached Rs 1,320, the futures made a profit of Rs 73.75 crore and the option made a profit of Rs 60.62 crore. In this way, the company earned more than Rs 134 crore on an investment of Rs 50 crore.

The company made this scam in 21 trading sessions. According to a report, Jane Street also adopted a big strategy in Bank Nifty and Nifty on the day of expiry. In the morning, the company bought huge amounts of stocks and futures, then made short positions in options and sold stocks in the afternoon. This made the index down and option trading made a big profit. Many times, the company bought Nifty -related stocks in the last two hours and took a long position through options, causing the index to climb and sold in profit.

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