Nine Kamath of zerodha has a warning on the Entire Jane Street Sa

The next few days will be very important for India’s capital markets, to reveal how reliant the system is on players like Jane Street, Zerodha’s Nithin Kamath wrote in a social media post on “X”, on Friday, July 4.Kamath wrote his post after market regulator Securities and Exchange Board of India (SEBI) barred Jane Street and its related entities from accessing the capital markets in an interim order over alleged market manipulation.
Over the last two years, between January 2023 and March 2025, Jane Street has made a profit of over ₹36,000 crore in the derivatives market, according to the SEBI interim order.
“Prop trading firms like Jane Street account for nearly 50% of options trading volumes. If they pull back— which seems likely —retail activity (~35%) could take a hit too. So this could be bad news for both exchanges and brokers,” Kamath wrote in his post.The result has been witnessed on India’s listed capital market names. Shares of Nuvama Wealth are down 12%, while those of BSE, Angel One and CDSL are down 6%, 6% and 2.5% respectively on Friday.

Crediting the regulator for the interim order, Kamath wrote that if the allegations are true, it is blatant market manipulation.

“Think about the structure of US markets: dark pools, payment for order flow, and other loopholes that allow hedge funds to make billions off retail investors. None of these practices would be allowed in India, thanks to our regulators,” Kamath wrote.

Jane Street has contested the findings of the SEBI interim order and will approach the regulator regarding this issue.