BSE Shares Slide Over 7% Amid SEBI Regulatory Concerns; Capital Market Stocks Also Under Pressure
Shares of BSE Ltd, Asia’s oldest stock exchange, plunged over 7% in early trade on Tuesday, July 8, as investor sentiment turned bearish due to mounting regulatory concerns and valuation-related pressures. By 11:15 a.m., BSE’s stock was trading at ₹2,456.9, down 6.8% from its previous closing, extending its recent losing streak.
The sharp fall came as reports surfaced that the Securities and Exchange Board of India (SEBI) is considering a major policy shift—linking leverage in options trading to actual exposure in the cash market. According to CNBC-TV18 sources, the SEBI board may take up this proposal in its upcoming meeting. If implemented, this move would likely increase cash market liquidity by encouraging more spot transactions but at the cost of reducing speculative activity in the options segment, which could impact short-term market volumes.
Market participants reacted swiftly to the news, with broad-based selling observed across capital market-linked stocks. Shares of Angel One, Central Depository Services Limited (CDSL), and 360 ONE WAM fell by as much as 6%, reflecting the uncertainty over potential regulatory tightening. These companies, heavily reliant on trading volumes and retail investor participation, are seen as particularly sensitive to any major changes in market structure or leverage norms.
Adding to the cautious mood, SEBI has also taken enforcement action against global trading giant Jane Street Group, barring it from accessing Indian securities markets. Jane Street, a major player in equity derivatives, reportedly earned over $2.3 billion in net revenue from the Indian market last year. The regulator’s move is being interpreted as part of a broader crackdown on aggressive derivatives trading practices.
The twin developments—regulatory scrutiny on options trading and the action against Jane Street—have heightened investor anxiety, particularly in capital markets and broking stocks. Market analysts suggest that clarity from SEBI will be crucial in the coming days to restore confidence and determine the long-term impact on liquidity and retail participation.
