Uday Kotak, founder of Kotak Mahindra Bank, has raised alarms about the increasing influence of 'money power' in the Indian stock markets, which he believes undermines capital formation and fair price discovery.

In a post on X (formerly Twitter) on July 5, 2025, Kotak highlighted troubling trends in recent stock market behaviors, emphasizing issues such as low liquidity in individual stocks compared to index derivatives and a focus on trading volume over fundamental analysis by exchanges and brokerages.

Kotak's remarks reflect a broader concern within the financial community regarding the efficacy of stock markets in fulfilling their foundational roles amidst rising speculative trading practices.

His concerns were prompted by the Securities and Exchange Board of India (SEBI) cracking down on Jan Street, a hedge fund based in New York, for manipulating Indian stock indices.

On July 4, 2025, SEBI found Jan Street guilty of executing large trades in both cash markets and futures and options, allowing the fund to exploit price discrepancies and earn massive profits.

SEBI has since banned Jan Street from trading in Indian markets and has seized over Rs 4,843 crore in illegal gains, with the hedge fund reportedly generating net profits of Rs 36,671 crore from January 2023 to May 2025.