US trading firm Jane Street has been barred by Indian market regulator, the Securities and Exchange Board of India (SEBI), from domestic markets. SEBI has imposed restrictions on Jane Street trading firm, ordering them to surrender unlawful profits of Rs 4,843.57 crore for alleged index manipulation during expiry days to secure substantial gains in index options.The restrictions apply to JSI Investments, JSI2 Investments Pvt Ltd, Jane Street Singapore Pte Ltd, and Jane Street Asia Trading of Jane Street Group (JS Group).A Sebi interim order issued on Thursday revealed that JS Group entities accumulated profits exceeding Rs 43,289 crore from NSE index options between January 1, 2023 and March 31, 2025, spanning all product categories and NSE segments.The entities received instructions to stop participating in any fraudulent, manipulative or unfair trading practices, or engaging in activities that could violate regulations, whether directly or indirectly.
SEBI’s Bank On Jane Street
Sebi identified JS Group’s questionable trading patterns earlier this year. NSE, acting as the primary regulator, explicitly warned JS Group to avoid excessive risks in index options markets and cease trading patterns suggesting manipulation, according to a PTI report.Subsequently, JS Group assured NSE in February 2025 of their commitment to regulatory compliance.Despite receiving a cautionary notice in February and making declarations to NSE, Sebi observed that JS Group resumed apparent manipulative ‘extended marking the close’ trading patterns in May 2025, involving substantial and aggressive intervention in index and constituent markets near expiry day closing to influence index movements for illegal advantage.“Such egregious behaviour, in clear disregard/ defiance of the explicit advisory issued to them by NSE in February 2025, amply demonstrates that unlike the vast majority of Foreign Portfolio Investors and other market participants, JS Group is not a good faith actor that can be, or deserves to be, trusted.“In the face of such a strong prima facie case that allowing the JS Group to continue as before may severely compromise investor protection on an extraordinary scale, Sebi has a duty to directly intervene,” Sebi’s whole time member Ananth Narayan G said in the order.Consequently, Sebi mandated JS Group to surrender unlawful gains amounting to Rs 4,843.57 crore.
