SEBI has banned US-based Jane Street Group from Indian markets and ordered the seizure of ₹4,843 crore over alleged manipulation of index options. The regulator has debarred four of its India-linked units pending further investigation.
In a sweeping regulatory action, the Securities and Exchange Board of India (SEBI) has barred US-based proprietary trading firm Jane Street Group from participating in Indian capital markets, citing alleged manipulation of benchmark indices through derivative positions. The ban, issued on July 3, also directs the seizure of ₹4,843 crore, which SEBI deems as illegal gains from the manipulated trades.
Jane Street Group, founded in 2000, is a global quantitative trading firm that operates across asset classes including equities, commodities, and fixed income. The firm employs over 3,000 professionals across five major global offices, including New York, London, Amsterdam, Hong Kong, and Singapore. According to its official website, Jane Street trades on more than 200 venues in over 45 countries.
In its interim order, SEBI has debarred four key entities—JSI Investments, JSI2 Investments Pvt Ltd, Jane Street Singapore Pte Ltd, and Jane Street Asia Trading—from engaging in Indian markets until further notice. These units are collectively referred to as the Jane Street Group. The watchdog alleges that the group engaged in systematic index manipulation in the Bank Nifty and Nifty options segments to generate outsized profits.
As per a report by PTI, the ₹4,843 crore disgorgement amount could be the highest penalty ever ordered by SEBI against a foreign firm.
The market impact was immediate. Shares of key capital market infrastructure providers such as BSE Ltd., NSE, and other financial service firms fell sharply, as investor sentiment turned cautious in response to the regulatory crackdown on one of the most sophisticated global trading firms.
This move underscores SEBI’s intent to crack down on entities exploiting regulatory arbitrage and derivative loopholes. The investigation remains ongoing.