The National Stock Exchange (NSE) in India witnessed a sharp 21% decline in its derivatives turnover on 10 July 2025, following the Securities and Exchange Board of India’s (SEBI) interim ban on U.S.-based trading firm Jane Street. The drop highlights the market’s dependence on the firm’s high-volume, allegedly manipulative strategies, which SEBI claims distorted the BANKNIFTY index and generated unlawful gains exceeding ₹36,000 crore.
The National Stock Exchange of India (NSE), headquartered in Mumbai, Maharashtra, recorded a significant 21.29% decline in derivatives turnover on 10 July 2025, following regulatory action against high-frequency U.S.-based proprietary trading firm Jane Street. The plunge exposes the Indian derivatives market’s strong reliance on Jane Street’s aggressive trading strategies.
The total turnover in the NSE’s derivatives segment fell to ₹476.39 lakh crore on 10 July, down from ₹605.23 lakh crore on 3 July—a day before the Securities and Exchange Board of India (SEBI) issued an interim order restraining Jane Street from operating in Indian securities markets.
The regulator accused Jane Street of executing trades that manipulated the BANKNIFTY index—a benchmark composed of 12 major Indian bank stocks—through unauthorized proprietary strategies such as Intraday Index Manipulation and Extended Marking the Close.
According to SEBI’s order, the number of derivative contracts traded on 10 July also dropped by 21%, falling to 25.25 crore from 31.92 crore a week earlier. The drop in turnover was primarily due to a 21.4% fall in weekly index options trading, which dipped to ₹472.54 lakh crore from ₹601.24 lakh crore.
SEBI’s investigation revealed that between January 1, 2023, and March 31, 2025, Jane Street made profits of ₹43,289.33 crore in index options while incurring losses of ₹7,687.21 crore in other segments, resulting in a net profit of ₹36,502.12 crore. The highest single-day profit of ₹734.93 crore was recorded on January 1, 2024.
SEBI has directed the impounding of ₹4,843.57 crore, believed to be unlawfully earned. This sharp regulatory move and the resulting market reaction have raised questions about oversight, liquidity dependency, and systemic risk in India’s rapidly growing equity derivatives market.
With Jane Street barred, experts warn that NSE’s derivatives turnover could fall further in the coming weeks, prompting urgent calls for deeper reforms in market infrastructure and trading practices.
Also Read: Jane Street’s Market Manipulation in India - Simplified For Everyday Indian Investors
