Tue Jul 08 06:40:00 UTC 2025: Here’s a summary of the text and a rewritten version as a news article:

**Summary:**

BSE Ltd shares plummeted due to investor concerns over regulatory changes proposed by SEBI, including linking options and cash exposure, which could curb options liquidity and retail trading. The stock also suffered from SEBI’s action against Jane Street for alleged manipulative trading, impacting BSE’s derivatives revenue. While Jefferies attempted to reassure investors of limited impact, ICICI Securities flagged valuation risks and regulatory overhangs.

**News Article:**

**BSE Shares Plunge Amid Regulatory Concerns, Jane Street Fallout**

Mumbai – Shares of the Bombay Stock Exchange (BSE Ltd) experienced a significant sell-off on Tuesday, July 8th, tumbling over seven percent as investors reacted to potential regulatory changes and the fallout from a SEBI crackdown on proprietary trading firm Jane Street.

The decline comes amid reports that the Securities and Exchange Board of India (SEBI) is considering measures to link options and cash market exposure, a move feared to reduce liquidity in the options market and curb retail trading activity. Sources indicate that SEBI may also explore additional steps to further restrict retail options trading.

Adding to the pressure, BSE shares have fallen 13% since SEBI took action against Jane Street, alleging manipulative trading strategies. The regulator has restricted the firm from accessing the Indian securities market, impacting a significant revenue stream. Jane Street generated over $2.3 billion in net revenue from equity derivatives in India last year.

“Investors are clearly spooked by the potential for increased regulatory scrutiny and the direct impact of the Jane Street case,” said one market analyst.

While some analysts, like those at Jefferies, attempt to downplay the severity of the situation, estimating a limited impact on BSE’s earnings, others are more cautious. Jefferies estimated contribution from Jane Street would be a smaller subset of FPI revenues, likely around one percent.

ICICI Securities flagged concerns over high valuation multiples and the potential for continued regulatory overhangs. The brokerage highlighted a recent decline in BSE’s premium Average Daily Turnover (ADTV), raising questions about future growth prospects.

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