Offshore crypto contract tied to Jio Platforms exposes India's regulatory gaps
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓An offshore crypto contract named JIOUSDT allows traders to bet on Jio Platforms stock prices without owning shares.
- ✓This synthetic derivative exposes major regulatory gaps in India.
- ✓Since Sebi lacks oversight of offshore exchanges like Bitget, it is hard to monitor insider trading or enforce rules on cross-border money flows.
Story at a Glance
- Category
- Indian Markets
- Reported By
- Livemint
- Reading Speed
- 5 Minute(s)
- Market Focus
- India Economy
Perpetual futures are derivatives popular in the crypto ecosystem. They allow traders to bet on an asset’s price without owning it and, unlike conventional futures, have no expiry date. JIOUSDT does not give traders any Jio shares; it is a synthetic derivative that offers exposure to the stock’s price movements. The contract allows leverage of up to 20 times, meaning a trader can post $100 as collateral to take a $2,000 position.
The first is price discovery. For a week before the IPO, Jio had a visible price formed entirely outside India’s capital markets. Yet safeguards that govern price discovery on regulated exchanges, including auctions, surveillance and circuit breakers, do not appear to apply to JIOUSDT.
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