SEBI Bars Jane Street, Orders Rs 4,843 Crore Deposit Over Options Trading Abuse
- SEBI has barred Jane Street and its related entities from Indian markets for alleged manipulation in Bank Nifty options trading and ordered them to deposit Rs 4,843.5 crore in illegal gains.
- Jane Street executed a trading pattern on expiry days by heavily buying and later aggressively selling Bank Nifty futures, influencing the index's closing and profiting massively.
- A peak short position of Rs 46,620 crore was created in the options segment; Jane Street earned Rs 735 crore on a single day despite intraday losses in cash and futures segments.
In a major enforcement action, the Securities and Exchange Board of India (SEBI) has barred US-based trading giant Jane Street and three of its affiliated entities from participating in the Indian securities market. The regulator has also ordered these entities to deposit Rs 4,843.5 crore, which it termed as illegal gains, into an account held in favour of SEBI.
The affected entities include JSI2 Investments Private Ltd, Jane Street Singapore Pte. Ltd, and Jane Street Asia Trading Ltd. SEBI’s order also enforces a debit freeze on their bank accounts to prevent further market engagement.
The order follows SEBI’s investigation into market manipulation tactics allegedly employed by Jane Street in trading index options, particularly in the Bank Nifty segment, between January 1, 2023, and March 31, 2025. The group reportedly earned a staggering Rs 43,289 crore in profits during this period.
According to the detailed findings, on 14 expiry days, Jane Street entities executed a pattern of heavy buying in Bank Nifty futures and the cash segment during the morning session, while simultaneously selling large volumes of Bank Nifty options. After noon, the strategy shifted to aggressive selling in the futures segment, aiming to influence the Bank Nifty’s closing value on expiry days.
One notable instance occurred on January 17, 2024, when Jane Street bought Bank Nifty futures worth Rs 4,370 crore and sold options worth Rs 32,115 crore. Later that day, they offloaded Rs 5,372 crore worth of futures positions. This resulted in a peak short position of Rs 46,620 crore in the options segment and softened the Bank Nifty’s closing, helping Jane Street book a net gain of Rs 673.4 crore despite losses in the cash and futures segments.
SEBI has accused the entities of distorting market integrity and creating a false market environment. In response, Jane Street has contested the findings and stated that it will continue to engage with SEBI to address the matter.
The interim order restricts all Jane Street Group entities operating in India from trading or dealing in any securities, either directly or indirectly.
