Jane Street order: Nuvama earnings may take 7-8% hit

SEBI's interim order restricting Jane Street from participating in the market until it returns profits from alleged manipulative trades highlights the regulator's focus on market governance.

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Given Jane Street's significant presence, the move may impact market volumes, though a pickup in proprietary trading could partly cushion the effect. On July 4, options premium turnover on exchanges were slightly below the 2-month average but still higher on a week-on-week basis. Market trends in this week will be the key. The earnings impact on BSE is expected to be limited, as foreign portfolio investors (FPIs) account for only 3-4% of turnover, while Nuvama could see a greater hit from its alternative strategies (AS) and institutional equities (IE) segments.