Jane Street banned by SEBI over 'index manipulation' in Indian markets; check details

Jane Street ban: India's regulator, SEBI, banned Jane Street Group from its markets for manipulating index options, demanding a return of Rs 4,843.57 crore in alleged illegal profits.

In a rare and bold move, India's market watchdog SEBI has barred global trading giant Jane Street Group from participating in Indian markets, accusing the firm of manipulating index options to make illegal profits. The regulator has also ordered Jane Street to return Rs 4,843.57 crore, calling it ill-gotten gains from questionable trades.

Jane Street, a major player in algorithmic and high-frequency trading, is accused of influencing stock index movements during expiry days. The SEBI order said the firm deliberately executed trades to sway the Nifty index's closing level and gain from it.

Who's been barred?

SEBI's action applies to four entities linked to Jane Street Group:

• JSI Investments
• JSI2 Investments Pvt Ltd
• Jane Street Singapore Pte Ltd

Jane Street Asia trading

Between January 2023 and March 2025, SEBI says these companies earned a whopping Rs 43,289 crore from trading on NSE. While not all of it is flagged as illegal, a chunk of over Rs 4,800 crore has been deemed as profits made through manipulation.

Warnings were ignored

Earlier this year, India's National Stock Exchange (NSE) raised concerns about Jane Street's trading behavior and issued a warning. In response, the firm promised to clean up its act and comply with all rules. But just a few months later, the same suspicious trading patterns returned.

SEBI calls it 'egregious behavior' and a clear defiance of regulatory advice.

"Unlike most foreign investors, JS Group isn't acting in good faith," SEBI Whole-Time Member Ananth Narayan G said.

What happens now?

The group is now barred from Indian markets until further notice, and has been ordered to stop any manipulative or unfair trading activity, even indirectly.

Why this matters

It is reportedly said that this could shake things up, especially in the derivatives segment, where Jane Street was a major player. Experts predict trading volumes may dip temporarily, but the move reinforces the importance of fair play.