Wall Street’s Big Fall: SEBI Drops the Hammer on Jane Street!
Key Developments
SEBI has imposed a sweeping ban on Jane Street Group, a major US-based trading firm, from participating in the Indian securities markets.
The action comes after allegations that Jane Street manipulated Indian stock indices and unlawfully pocketed gains of Rs 4,843 crore.
The ban is immediate and covers all Jane Street entities and affiliates, barring them from buying, selling, or dealing in any Indian securities, directly or indirectly.
The Alleged Manipulation
Jane Street is accused of artificially inflating stock prices of key index components, especially in the Bank Nifty and Nifty 50, during morning trading sessions.
The firm would then reverse its positions aggressively later in the day, causing the indices to fall and profiting from options trades that bet on such movements.
This strategy, described as “intra-day index manipulation” and “marking the close,” was allegedly deployed on multiple expiry days, misleading retail investors and distorting market prices.
The Numbers That Shocked the Street
SEBI’s investigation revealed that Jane Street and its related entities earned a staggering Rs 36,671 crore in profits from Indian markets between January 2023 and March 2025.
Of this, Rs 4,843 crore has been identified as unlawful gains directly linked to manipulative trading practices.
The regulator has ordered the impounding of these gains, directing Jane Street to deposit the amount in an escrow account under SEBI’s control.
SEBI’s Crackdown
All bank, demat, and custodial accounts linked to Jane Street in India have been frozen for debits; only credits are allowed, and withdrawals require SEBI’s explicit approval.
Jane Street and its affiliates are prohibited from transferring or disposing of any Indian assets until the unlawful gains are secured.
The firm has been given a short window to respond to SEBI’s order, but the ban remains in force until further notice.
Industry Impact
This is one of the most severe regulatory actions ever taken against a foreign trading entity in India.
The move sends a strong message to global trading giants about zero tolerance for market manipulation in Indian financial markets.
The case has rattled the trading community, with many calling it a “watershed moment” for market integrity in India.
What’s Next?
SEBI’s investigation is ongoing and may widen to cover all indices and exchanges where Jane Street was active.
Jane Street has denied the allegations and vowed to engage with the regulator, but the ban stands as of now.
The Indian market awaits further developments as SEBI tightens its grip on suspicious trading activities.
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