SEBI bars Jane Street from markets, orders impounding Rs.4,844 crore in unlawful gains

The Securities and Exchange Board of India (SEBI) has barred Jane Street, a US-based proprietary trading firm, and its affiliates from accessing the Indian securities markets and directed to impound Rs.4,844 crore made in unlawful gains from alleged market manipulation.

The 105-page interim order, released early on Friday morning, comes after months of investigation into Jane Street's trades in index derivatives, particularly Bank Nifty options. Until the completion of the investigation, the stock exchanges will closely monitor any future dealings and positions of JS Group on an ongoing basis, to ensure that they do not, either directly or indirectly, indulge in any kind of manipulative activity.

SEBI's findings suggest that the firm engaged in a repeated and calculated pattern of market manipulation on expiry days by executing large, aggressive trades in the underlying cash and futures market to influence index levels. This would allow them to profit from significantly larger positions in the highly liquid index options market by misleading smaller individual traders, and engineer a favourable expiry price both activities are prima facie in violation of PFUTP regulations.

The Securities and Exchange Board of India (SEBI) has barred Jane Street, a US-based proprietary trading firm, and its affiliates from accessing the Indian securities markets and directed to impound Rs.4,844 crore made in unlawful gains from alleged market manipulation.

The 105-page interim order, released early on Friday morning, comes after months of investigation into Jane Street's trades in index derivatives, particularly Bank Nifty options. Until the completion of the investigation, the stock exchanges will closely monitor any future dealings and positions of JS Group on an ongoing basis, to ensure that they do not, either directly or indirectly, indulge in any kind of manipulative activity.

www.thehindubusinessline.com, dt. 05-07-2025