Jane Street SEBI Ban Updates: SEBI curbs Jane Street, which manipulated Bank Nifty to gain ₹36,671 crore
by Team BL · BusinessLineFILE PHOTO: The logo of Securities and Exchange Board of India (SEBI) is seen on its headquarters in Mumbai, India, March 24, 2025. REUTERS/Hemanshi Kamani/File Photo | Photo Credit: HEMANSHI KAMANI
SEBI bars Jane Street from Indian markets, Jane Street SEBI NewsLive Updates Today: 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 disgorge ₹4,844 crore made in unlawful gains from alleged market manipulation.
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16:02 | July 4, 2025
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15:58 | July 4, 2025
Jane Street Live: BSE shares crack 7% amid SEBI’s action on Jane Street; Nuvama slumps
BSE shares cracked 7.34 per cent due to profit booking on Friday and investors’ sentiment seemed to have startled following SEBI’s action on the US-based trading firm Jane Street
BSE shares crack 6% amid SEBI’s action on Jane Street
BSE shares today: Market experts attribute the fall to profit booking, along with concerns stemming from SEBI’s action against Jane Street.
15:46 | July 4, 2025
Jane Street live: How Jane Street allegedly manipulated Bank Nifty to gain ₹36,671 crore
The Securities and Exchange Board of India (SEBI)’s interim order against Jane Street Group accuses the global trading firm of executing a sophisticated, two-stage strategy to manipulate Bank Nifty index levels and profit from options trades over the past two years.
Akshata Gorde of businessline writes | Read more
How Jane Street allegedly manipulated Bank Nifty to gain ₹36,671 crore
The Securities and Exchange Board of India (SEBI)’s interim order against Jane Street Group accuses the global trading firm of executing a sophisticated, two-stage strategy to manipulate Bank Nifty index levels and profit from options trades over the past two years.
15:07 | July 4, 2025
Jane Street live: Indian Brokerage, Bourse Shares Drop After Curbs on Jane Street - Bloomberg
Shares of India’s oldest stock exchange and a brokerage linked to Jane Street Group LLC fell after the US firm was temporarily barred from the nation’s securities market.
Nuvama Wealth Management Ltd., a local partner which had earlier received notices relating to Jane Street, fell 11% on Monday. There are no direct allegations against Nuvama. Shares of BSE Ltd. dropped as much as 7.3% on worries of lower trading volumes in derivatives. Both the stocks dropped by the most in about three months.
“Institutional brokers who provide execution services to Jane Street could be affected,” said Karthick Jonagadla, chief executive and founder of Quantace Research & Capital Pvt. “Also, this case might impact foreign institutional derivative activity because of heightened scrutiny.”
Bloomberg
14:20 | July 4, 2025
Jane Stree Live: How Jane Street Group manipulated derivatives to earn illegal profits: Experts decode SEBI’s Rs 4,843 crore chase - ANI
In a major development, the Securities and Exchange Board of India (SEBI) has passed an interim order against the Jane Street Group, to impound Rs 4,843.57 crore of illegal gains by manipulating the securities market, particularly on expiry days of Bank Nifty options.ANI spoke with various experts to decode the trading strategy adopted by JS group to make undue and illegal profit from market movements at the cost of retail investors.Speaking to ANI, Uttam Bagri, Managing Director of BCB Brokerage, explained that Jane Street followed a strategy that misused the connection between the cash and derivatives segments.
“What they did was, in the cash segment, they kept taking strong long positions. At the same time, in the derivatives segment, they were going short, with a much larger position,” Bagri said.
In simple language, the whole trading pattern of the Jane Street group can be explained as follows.
In a small village, there was a market for Curd and Lassi. Their prices are linked. High Frequency Traders (HFTs) like Jane Street Group in the morning used their Financial Muscle to corner the market and move the prices higher. The Lassi prices moved higher in tandem. In the afternoon, they started selling options on Lassi at much higher prices and buying options on curd at prices much lower than the current market price.Street, looking at a steady upmove in curd prices, sold put options at lower prices at very little premium. In the late afternoon, HFTs started dumping curd at throwaway prices, bringing down lassi prices.
The seller of put options suffered huge losses. HFT did suffer some loss on the sale of curd, but made far more money on the buying of lassi put option.SEBI’s order also noted that the group accumulated long positions in the cash market and created the impression of strong buying interest.Meanwhile, they silently built massive short positions in the derivatives market. Later in the day, they suddenly start selling off their long positions in the cash market. This sharp sell-off pulled prices down, and because they had taken large short positions in the derivatives market, they profited big when prices fell against minor losses in the cash market.
Bagri said, “This strategy gave them huge profits in the derivatives segment, even though they might have faced losses in the cash segment. The net result was a significant profit due to market movement caused by their trades”.SEBI’s interim order marks one of the biggest actions taken against market manipulation in recent years and raises questions about the role of sophisticated players in India’s capital markets.SEBI has also pointed out that this trading behaviour affected the closing prices of stocks, particularly on options expiry days. The group allegedly took massive positions in the derivatives segment and made aggressive trades in the cash segment during the final trading hours to push the index in a specific direction.This movement helped them benefit from the expiry of options contracts, leading to even higher gains.Bagri said that this method of trading falls under market manipulation. “The cash market has fewer players, so these large trades easily influence price movement. SEBI believes this is not fair or proper,” he said.
When asked why SEBI passed an interim order, Bagri said, “SEBI wants to send a strong message. Whether you’re a small trader or a large global player, if you manipulate the market, they will take action. This order reinforces that message.”SEBI has also held the group liable “jointly and severally.” This means all the involved entities or individuals are equally responsible for the entire Rs 4,843-crore gain, and none can escape accountability.
Explaining the impact on retail investors, Bagri added, “Market participants accept risks related to the economy, politics or other external events. But manipulation risk is not acceptable. When prices are being influenced by unfair means, it’s a danger to market integrity.”For retail investors, Bagri advised that “Don’t rely on tips or follow market hype blindly. If you’re confident, study the market yourself. Otherwise, take advice, whether it’s from mutual fund managers, stockbrokers, certified investment advisors, or trusted professionals like chartered accountants. But make sure the advisor is legitimate and understands your interests. Most people overestimate their market knowledge. My advice is: choose your advisor wisely”.
Speaking with ANI, Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company, noted, “High-frequency traders (HFTs) have powerful tools like algorithms, superior data and massive financial muscle. This gives them the power to make large intraday bets and move the markets. A recent study showed that 9 out of 10 participants in F&O lose money. HFTs are among the few making billions every year from Indian markets.”Though Shah refrained from commenting on the legal aspects of the SEBI order, he emphasised the need for a fair and level playing field.SEBI’s interim order marks one of the biggest actions taken against market manipulation in recent years and raises questions about the role of sophisticated players in India’s capital markets. (ANI)
13:45 | July 4, 2025
Stock market live today: Sensex, Nifty in red, Trent biggest laggard
Top gainers and losers today July 4: Sensex, Nifty 50 in red, Trent biggest laggard, BSE, Nuvama shares react to SEBI’s action on Jane Street
Top movers today: Shares of Bajaj Finance traded with over 1 per cent gain, leading the Nifty 50 pack, following its Q1 business update. Meanwhile, Trent shares were hit hard, down 11 per cent. Wipro, Hero Motocorp, Tech Mahindra, Infosys and Bajaj Finserv traded with marginal gains, while Tata Steel, Eicher Motors, SBI Life, IndusInd, JSW Steel and Grasim depreciated 1-2 per cent.
13:44 | July 4, 2025
Jane Street Curbed in India After $4.3 Billion Trading Gain - Bloomberg
Curbs Imposed
Pending detailed investigation, Jane Street Group entities are immediately “restrained from accessing the securities market and are further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly,” SEBI said. Banks have been directed to ensure no debits are made without SEBI’s permission in respect of the accounts held individually or jointly by the entities, according to the interim order.
SEBI also said the restrictions can be lifted if Jane Street deposits the said amount in an escrow account at a designated bank in India.
Jane Street disputes the findings of the SEBI interim order and will further engage with the regulator, a representative for the US-based market maker said in a statement. SEBI said the firm can contest the regulator’s “prima facie observations” within 21 days of the receipt of the order.
“This may signal SEBI’s growing vigilance and willingness to assert control over foreign institutional activity making hefty gains in its derivatives market —particularly where such strategies blur the line between smart trading and market distortion,” said Charu Chanana, chief investment strategist at Saxo Markets in Singapore.
Bloomberg input
12:55 | July 4, 2025
What is Jane Street, the US trading firm facing SEBI’s wrath?
What is Jane Street, the US trading firm facing SEBI’s wrath?
India bars Jane Street from securities market for unlawful gains, impounds $567 million, disputes findings, operates in Asia.
12:42 | July 4, 2025
Jane Street Live: JANE STREET’S INDIA CHALLENGE - Reuters
JANE STREET’S INDIA CHALLENGE
India’s market regulator says Jane Street as a group first aggressively bought significant quantities of banking stocks and futures, temporarily pushing up the banking index.
Later, it aggressively sold large quantities of the same banking stocks and futures.
This large scale buying influenced retail investors to invest, leading to market manipulation, SEBI said.
Reuters
12:42 | July 4, 2025
Jane Street Live: Scale of its operations in India - Reuters
THE SCALE OF ITS INDIA OPERATIONS
Between January 2023 and March 2025, the four entities cumulatively made a profit of $5 billion by trading in equity options in India, the country’s market regulator SEBI said in its order.
Jane Street’s large India presence first gained prominence last year when the firm sued a rival hedge fund, Millennium Management, accusing it of stealing a valuable in-house trading strategy.
At a court hearing in the U.S., it was revealed that the strategy involved India options and had generated $1 billion in profits for Jane Street in 2023. The two firms settled the case in December.
Reuters input
12:38 | July 4, 2025
Jane Street Live: Know more about Jane Street, the US trading firm facing heat in India - Reuters
India has barred one of the world’s largest quant trading firms, Jane Street, from accessing its securities market after an investigation found it made “unlawful gains”, taking the most stringent action ever against a foreign trading firm.
The markets regulator also impounded $567 million from U.S.-based Jane Street, which said it disputed the findings. Here are facts about Jane Street and its India presence:
WHAT IS JANE STREET?
Jane Street has more than 3,000 staff in five offices across the United States, Europe, and Asia. It trades in stocks of 45 countries and is also rapidly increasing its presence in Hong Kong by purchasing more office space.
Jane Street was established in 2000 and its annual revenues last year were $20.5 billion.
It describes itself on its website as a firm that uses “sophisticated quantitative analysis and a deep understanding of market mechanics” to keep prices consistent and reliable.”
“We’re a firm of puzzle solvers on and off the clock,” it says.
Reuters
12:25 | July 4, 2025
Jane Street Live: How Jane Street allegedly manipulated Bank Nifty to gain ₹36,671 crore
The Securities and Exchange Board of India (SEBI)’s interim order against Jane Street Group accuses the global trading firm of executing a sophisticated, two-stage strategy to manipulate Bank Nifty index levels and profit from options trades over the past two years.
The regulator observed a repeated pattern called ‘intraday index manipulation’, primarily executed on expiry days when index option contracts are settled and pricing is especially sensitive. Another strategy called the ‘extended market-the close’ was also observed on a few sessions, with activity concentrated towards the end of the session.
How Jane Street allegedly manipulated Bank Nifty to gain ₹36,671 crore
The Securities and Exchange Board of India (SEBI)’s interim order against Jane Street Group accuses the global trading firm of executing a sophisticated, two-stage strategy to manipulate Bank Nifty index levels and profit from options trades over the past two years.
12:24 | July 4, 2025
Jane Steet Live: BSE shares in focus | Shares crack
BSE shares cracked 6.12 per cent due to profit booking on Friday and investors’ sentiment seemed to have startled following SEBI’s action on the US-based trading firm Jane Street.
The markets regulator SEBI barred Jane Street from the securities markets and directed the company to disgorge unlawful gains of ₹4,843.57 crore for allegedly manipulating index levels on expiry days to gain massive profits in index options.
BSE shares crack 6% amid SEBI’s action on Jane Street
BSE shares today: Market experts attribute the fall to profit booking, along with concerns stemming from SEBI’s action against Jane Street.
12:23 | July 4, 2025
Jane Street Live Today: SEBI bars Jane Street from markets, orders disgorgement of ₹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 disgorge ₹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 bars Jane Street from accessing securities market
SEBI bars Jane Street from Indian securities market for alleged manipulation, impounds ₹4,840 crore unlawful gains.
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Published on July 4, 2025