SEBI Bars Jane Street and Seizes $567 Million on Index-Manipulation Charge

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Updated Jul 4, 2025, 04:04 PM

India’s Securities and Exchange Board of India issued a 105-page interim order barring all Jane Street Group entities from buying, selling or dealing in Indian securities, and froze their bank, demat and custodial accounts. The regulator also directed the firm to deposit Rs 4,843.57 crore (about $567 million) in an escrow account, saying the sum represented unlawful gains from index manipulation.

Investigators allege that, between January 2023 and March 2025, the US-based proprietary trading house engineered a strategy that propped up Bank Nifty stocks in the cash and futures markets while simultaneously taking large short positions in index options. SEBI estimates the scheme generated Rs 36,500 crore in overall profit, comprising Rs 43,289 crore of options gains offset by Rs 7,208 crore of deliberate losses in other segments.

Jane Street said it "disputes the findings" but is "committed to compliance" and will engage with the regulator. The firm has 21 days to file objections and may seek relief from the Securities Appellate Tribunal; the interim restrictions remain until SEBI completes its investigation.

Zerodha founder Nithin Kamath warned that the crackdown could dent liquidity, noting that proprietary firms such as Jane Street account for roughly half of India’s options volume and that retail traders supply another 35%. Shares of market-linked businesses reacted sharply on Friday, with Nuvama Wealth down 12%, BSE and Angel One each off 6%, and CDSL down 2.5%.

Regulatory sources told Moneycontrol that SEBI does not plan additional rules in response to the episode, arguing that tighter surveillance and enforcement of existing derivatives norms, including new delta-based position limits introduced on 1 July, are sufficient to deter similar misconduct.

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#India #Jane Street Group #Indian #Bank Nifty #SEBI #Jane Street #Securities Appellate Tribunal #Zerodha #Nithin Kamath #Nuvama Wealth #BSE #Angel One #CDSL #Moneycontrol

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Sources

economictimes.indiatimes.com(3)moneycontrol.com hindustantimes.com cnbctv18.com

Moneycontrol

@moneycontrolcom

#MarketsWithMC | 'Better enforcement, not new rules': SEBI sources on regulatory reaction in Jane Street Case #SEBI #JaneStreet @BrajeshKMJi reports ⤵️

Economic Times

@EconomicTimes

#LeadStoryOnET | Jane Street fallout: Zerodha's Nithin Kamath flags risk to brokers and stock exchanges

Economic Times

@EconomicTimes

Jane Street Fallout: Zerodha's Nithin Kamath flags risk to brokers and stock exchanges