Hacker News Reader

I have! JS was engaged in standard arbitrage and did nothing wrong. SEBI is coming after them because JS being able to do what it was doing is deeply embarrassing.

View on HN

Standard arbitrage? JS bought stocks worth 572 crores and sold options worth an effective short value of 8,751 crores. 15x more. You dont short 15x your long position to do arbitrage. They were moving the market to suit their positions.

No, all you can read into that is where they believe the fair value to be. If it landed in the middle, you'd obviously have to pick up a much larger delta in options given the liquidity issues on Indian markets.

>They were moving the market to suit their positions.

They were correcting a mispricing, not creating one.

Lets see how that reasoning works out in court then. SEBI sent them a caution notice earlier asking them to stop and they didn't. Calling it a "simple arbitrage" is silly.

Given that India lacks a functioning judiciary, we might be waiting a while. Plenty of cases over 30 years old waiting for supreme court rulings.

Reply on news.ycombinator.com