By News18
After markets regulator Sebi banned the Jane Street group for manipulating Indian stock markets, the US-based trading firm said it disputes the findings of the Sebi interim order and will further engage with the regulator.
鈥淛ane Street is committed to operating in compliance with all regulations in the regions we operate around the world,鈥 Jane Street said in an emailed response to Reuters. 鈥淛ane Street disputes the findings of the SEBI interim order and will further engage with the regulator.鈥
Sebi barred Jane Street entities from the securities markets and directed the group to disgorge unlawful gains of Rs 4,843 crore for allegedly manipulating stock indices through positions taken in the derivatives segment.
The regulatory action comes after an extensive investigation into alleged manipulation of the Indian stock market through index derivatives, particularly Bank Nifty options, which earned the company massive profits of over Rs 36,500 crore between January 2023 and March 2025.
Between January 2023 and March 2025, Jane Street entities made over Rs 43,289 crore in profits from index options, particularly Bank Nifty (BANKNIFTY) using various strategies that allegedly manipulated markets. These profits were partly offset by losses in other segments like stock futures and cash equity, resulting in a net gain of Rs 36,502 crore.
In a 105-page order, Sebi highlighted two key manipulative strategies used by Jane Street to allegedly trick the Indian markets 鈥 鈥業ntraday Index Manipulation Strategy鈥 and 鈥楨xtended Marking the Close Strategy鈥.
Who Is Jane Street?
Founded in 2000, Jane Street is a US-based leading global trading firm that operates as a proprietary trading company. Unlike hedge funds, Jane Street trades using its own capital. It has operations across the US, Europe, and Asia, specialising in high-frequency trading and algorithmic strategies. The firm has over 2,600 employees and is known for its sophisticated quantitative models and automated market-making systems.
In India, it operated through four firms 鈥 JSI Investments Pvt Ltd, JSI2 Investments Pvt Ltd, Jane Street Singapore Pte Ltd, and Jane Street Asia Trading Ltd.