In an unprecedented move, India’s Securities and Exchange Board (SEBI Bars) has barred U.S.-based trading giant Jane Street and its affiliates from participating in the Indian securities market. The action follows allegations of manipulating the Bank Nifty index through derivatives trading.
What SEBI Found:
- Jane Street allegedly manipulated index levels by:
- Aggressively buying Bank Nifty stocks and futures early in the day.
- Simultaneously building large short positions in index options.
- Reversing trades later to profit from the artificial volatility.
- Aggressively buying Bank Nifty stocks and futures early in the day.
- The trades created a false market appearance, influencing settlement prices and misleading retail traders.
- SEBI accused the firm of earning $4.3 billion in unlawful profits between Jan 2023 and March 2025.
Regulatory Action:
- 48.4 billion INR ($567M) impounded as “unlawful gains.”
- Complete trading ban in India until further notice.
- Funds ordered to be held in an escrow account with frozen access.
- Jane Street can respond within 21 days or challenge the order in court.
Jane Street Responds:
“We dispute the findings and will engage with the regulator. Jane Street is committed to compliance globally.”
Market Impact:
- No widespread panic, as SEBI timed the order post weekly expiry to avoid disruptions.
- New derivative position rules from July 1 aim to tighten oversight further.
- Experts say market liquidity remains stable, and foreign investor sentiment is unaffected.
Takeaway:SEBI (SEBI Bars) is sending a strong message to global trading firms—India welcomes capital, but won’t compromise on market integrity.
Read More : Australia Enacts First National Social Media Ban for Under‑16s & Abhibus offers cheapest bus fares! Travel anywhere in India at low cost.