SEBI Bars Jane Street, Seizes ₹4,843 Crore for Index Manipulation

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Updated Jul 4, 2025, 11:03 AM

India’s Securities and Exchange Board (SEBI) has issued an interim order barring U.S. proprietary trading firm Jane Street Group and four related entities from accessing the domestic securities market. The regulator said its probe found that the firm manipulated benchmark indices through large, coordinated positions in cash equities, futures and options, and ordered exchanges to prevent the group from taking any new trades until it completes further investigations.

SEBI’s 105-page order alleges that Jane Street artificially lifted prices of Bank Nifty and, on some occasions, Nifty 50 constituents on expiry days, then reversed those trades to profit from sizeable short options positions. The scheme, pursued across 18 trading sessions between January 2023 and May 2025, allegedly generated about ₹43,289 crore in options profits while offsetting losses in cash and futures markets, leaving net gains of roughly ₹36,500 crore ($4.3 billion).

To secure what it calls “unlawful gains,” the watchdog impounded ₹4,843 crore (about $567 million) and directed banks to freeze all Jane Street–linked accounts and place the money in an escrow facility. The firm has 21 days to respond or seek relief from the Securities Appellate Tribunal, and will be allowed to unwind existing Indian positions only under exchange supervision and in a phased, non-disruptive manner.

Jane Street said it “disputes the findings of the SEBI interim order and will further engage with the regulator,” stressing its commitment to compliance. The crackdown—described by SEBI as its most stringent action against a foreign trading house—sent shares of several brokerage and exchange operators lower, with Nuvama Wealth sliding 11 percent. The case comes as global high-frequency traders expand in what is now the world’s busiest equity-derivatives market, prompting New Delhi to tighten oversight of complex trading strategies.

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#India #Securities and Exchange Board #SEBI #Jane Street Group #Jane Street #Bank Nifty #Nifty #Securities Appellate Tribunal #Indian #Nuvama Wealth #New Delhi

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Robin Wigglesworth

@RobinWigg

India’s financial regulator has banned Jane Street from the country for a “sinister scheme” of manipulation that allegedly netted the trading firm hundreds of millions of dollars. We’ve started digging into its 105 page investigation here —>

Reuters

@Reuters

India bars Jane Street from its securities market, citing manipulation of stock indexes

News18

@CNNnews18

Jane Street Group Banned: According to SEBI, Jane Street systematically influenced the prices of Bank Nifty and Nifty 50 index constituents #JaneStreet #SEBI #investments