Lagatar24 Desk
New Delhi: In a major crackdown, the Securities and Exchange Board of India (SEBI) has barred global trading giant Jane Street and its affiliates from the Indian securities market over allegations of large-scale market manipulation. In a detailed interim order dated July 3, the regulator also directed the firm to impound “unlawful gains” amounting to a staggering ₹4,843 crore ($566.71 million).
Expiry-Day Manipulation Allegations
SEBI’s investigation revealed that Jane Street entities allegedly engaged in a manipulative trading pattern, particularly on the expiry days of index options contracts. The regulator accused the firm of using complex strategies to artificially influence the prices of indices like the Nifty and Bank Nifty to generate massive illegal profits from its large positions in the index options segment. This activity allegedly continued even after a caution letter was issued by the National Stock Exchange (NSE) in February 2025. The SEBI order restrains Jane Street from all trading activities and has directed banks to freeze the firm’s accounts.
Firm’s Response and Market Impact
In an emailed statement, Jane Street disputed the findings of SEBI’s interim order and stated it will engage further with the regulator, reaffirming its commitment to regulatory compliance. The ban has sent shockwaves through the market, particularly impacting shares of Jane Street’s domestic trading partner, Nuvama Wealth Management, which saw a significant slump. The move is seen as a strong signal of SEBI’s increased vigilance over the activities of large foreign institutional players in India’s booming derivatives market.
