Okay fine. Keep crying. Wonāt bother after this. ![]()
I would appreciate it if you didnāt bother with just āitās all randomā.
Nah. Not for your appreciation. Just know that itās useless replying here.
Excerpts from SEBI interim order
20.On 15 BANKNIFTY index option expiry days identified with āIntra-day IndexManipulation Strategyā in this Order, in the first patch of the day, as has been clearlydemonstrated by data and analysis, JS Group first aggressively bought significantquantities of BANKNIFTY underlying constituent stocks and futures, temporarilypushing up or lending considerable support to the BANKNIFTY index. In thesecond patch of the day, as has again been demonstrated by data and analysis,JS Group was seen to practically and effectively reverse all of this buying activityfrom the first patch, by aggressively selling large quantities of BANKNIFTYunderlying constituent stocks and futures.
21.There is little or no economic rationale to justify such large and aggressive intradaytrading activity in stocks and futures on a standalone basis. In fact, given the sheer size, aggression, manner of trading and transaction costs involved, standalone,such activities could more often than not end with net trading losses. Note that across the 15 days in question, JS Group booked a total intraday trading loss ofINR 199.7 crores in their activities in the BANKNIFTY constituent cash stocks andfutures markets.
22.By preponderance of probability, the only reasonable explanation for the sharpbuying in BANKNIFTY constituent shares and futures in Patch I (with the effectiveimpending reversal of all these trades in Patch 2 later in the day) is that it wasdesigned to artificially manipulate the BANKNIFTY Index during Patch 1, andthereby artificially and temporarily moving the prices of BANKNIFTY calls and puts. JS Group certainly exploited this to the hilt, and as has been clearly demonstrated above in all 15 instances wherein they actively traded BANKNIFTY puts and BANKNIFTY calls during Patch I, at prices that were very advantageous to themselves, and to the detriment of other traders (including many small retailtraders). During Patch I, JS Group effectively took on active opposite side positionsin BANKNIFTY index that were significantly higher in magnitude than the quantumof their intervention in the underlying cash and futures markets
23.Given the repetitive nature of this distinctive pattern over 15 days, bypreponderance of probability, JS Group and its trading systems were clearly designed to reverse all of the significant and aggressive Patch I activity inBANKNIFTY stocks and futures during Patch 2, i.e., by the end of the day. Unlike other participants, the JS Group and its trading systems were aware, therefore,that the stock and BANKNIFTY prices were being influenced artificially for a shortperiod of time by their own demonstrably large and aggressive actions in theunderlying cash and futures markets. They were also aware that BANKNIFTY wasvery likely to reverse again by the end of the day, given the design to aggressively reverse all of their morning activity (and sometimes even more). However, other entities - including the many retail traders - who trade solely in BANKNIFTY index options and look to the extant BANKNIFTY level to price their options, were oblivious to this pattern unfolding. Consequently, they were induced to deal in options at a time during Patch I when the BANKNIFTY index and options markets were being artificially and temporarily influenced.
The last line in 23 cannot be stressed enough:
However, other entities - including the many retail traders - who trade solely in BANKNIFTY index options and look to the extant BANKNIFTY level to price their options, were oblivious to this pattern unfolding. Consequently, they were induced to deal in options at a time
They know. You donāt. Retail would be tempted/āinducedā illegally against the laws by manipulation of the index. They know how itās going to play out, while you have to guess and are āoblivious to the patternā. Itās not enough to know yourself and control your emotions. Itās important to Know your enemy. Your loss isnāt just chance or your failure⦠the system was designed to make you take that position. That head and shoulder you saw, Jane drew it. That sudden 5 minute buying, Jane started it. The news, Jane paid for it. That bounce back was drawn to give you hope, so that they can take more money from you. Beware! The reason you need to work so hard adhering to multiple rules is because Jane is actively working against you. And Jane is just the iceberg.