Securities regulatory body SEBI prohibits Jane Street Group from participating in Indian securities market due to accusations of index manipulation.
The Securities and Exchange Board of India (SEBI) issued an interim order against the global trading firm, Jane Street Group, on July 3, 2023, for alleged manipulation of Indian stock market indices. This order, spanning 105 pages, reflects SEBI's commitment to combating 'sinister' trading practices that distort market prices and harm market integrity.
The order accuses Jane Street of using high-volume, cross-segment trading strategies aimed at misleading retail traders and manipulating index levels, particularly on expiry days. One specific tactic detailed is the "Intra Day Index Manipulation," where on January 17, 2024, Jane Street reportedly bought Rs 4,370 crore worth of Bank Nifty constituent shares in the morning to artificially raise the index, then sold these shares aggressively later in the day while holding large bearish positions in index options. This enabled the firm to earn Rs 734.93 crore profit from Bank Nifty options on that single day.
As a result, SEBI stated that Jane Street earned an estimated Rs 36,500 crore in profits from January 2023 to March 2025, with Rs 43,289 crore coming specifically from index options. Consequently, SEBI ordered banks to freeze Rs 4,840 crore in alleged unlawful gains in the firm’s Indian accounts. The firm was also restrained from accessing the securities market and prohibited from buying, selling, or dealing in securities, directly or indirectly.
Jane Street has been granted 21 days to file objections or challenge the interim order before the Securities Appellate Tribunal. The company has disputed SEBI’s findings and vowed to engage with the regulator. However, as of now, the interim order against Jane Street Group remains in effect, and the firm is yet to comply with SEBI's directive to disgorge the specified amount of Rs 4,843.57 crores.
The alleged manipulation of Indian stock market indices by Jane Street Group is a significant issue in the Indian securities market. This interim order marks a significant regulatory action aiming to uphold fair market practices in India’s stock exchanges. SEBI’s Whole-Time Member emphasized the seriousness of the violations and reiterated that such market manipulations will not be tolerated.
It is important to note that the investigation into the manipulation activities of Jane Street Group is still ongoing, and the firm is yet to appeal the interim order passed by SEBI. As the situation develops, it will be crucial to monitor the actions taken by both SEBI and Jane Street Group to ensure the integrity of India's securities market.
[1] SEBI Press Release: SEBI issues show cause notice to Jane Street Group for alleged manipulation of Indian stock market indices, July 3, 2023, available at:
[2] Livemint: SEBI orders Jane Street to disgorge Rs 4,843.57 crore in unlawful gains, July 4, 2023, available at:
[3] Economic Times: SEBI freezes Rs 4,840 crore in Jane Street Group's Indian accounts, July 4, 2023, available at:
[4] Moneycontrol: SEBI orders Jane Street to disgorge Rs 4,843.57 crore, July 4, 2023, available at:
[5] The Hindu BusinessLine: SEBI orders Jane Street to disgorge Rs 4,843.57 crore, July 4, 2023, available at:
- The interim order issued by SEBI against Jane Street Group, a global trading firm, is causing a stir in the finance and general-news sectors, as the allegations of manipulation of Indian stock market indices could have significant implications for market integrity and business ethics.
- With politics often playing a role in business regulations, it will be interesting to see how Jane Street Group, a high-profile company, navigates this situation and responds to the ongoing investigation by SEBI, as the outcome could set a precedent for future trading practices in the Indian securities market.
