SEBI Bars Jane Street from Indian Markets, Rs 4,843 cr Frozen amid Derivatives Manipulation Probe
SEBI has barred U.S. quant firm Jane Street and frozen ₹4,843 cr amid allegations of manipulating Bank Nifty during options expiry days. Stocks like BSE, Angel One and CDSL tumbled. Jane Street disputes claims and plans to appeal
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Mumbai — On July 3, the Securities and Exchange Board of India (SEBI) slapped an interim ban on U.S.-based quant trading giant Jane Street, preventing it and its affiliated entities from operating in Indian securities markets. SEBI’s move follows an in-depth 105‑page probe that alleges the firm orchestrated a sophisticated “Intra-day Index Manipulation Strategy” across 15 Bank Nifty options expiry days, generating ₹4,843 crore in alleged illicit gains.
According to SEBI, Jane Street repeatedly pushed up Bank Nifty futures and constituent stocks in the morning, then reversed positions later in the day—artificially moving index levels to profit from options positions. The regulator identified extraordinary net profits of over ₹43,289 crore from index options between January 2023 and March 2025
Reacting swiftly, SEBI ordered banks to freeze withdrawals from Jane Street-linked accounts, impounding the disputed funds and requiring them to be placed in escrow. The firm has also been given a 3‑month window to exit any existing derivatives positions.
The regulatory action triggered sharp falls in capital market service stocks: BSE dropped ~6%, Angel One ~6–7%, CDSL ~2–3%, and Nuvama Wealth (Jane Street’s local partner) plunged nearly 9%. Analysts predict a temporary decline in trading volumes but say the crackdown boosts market integrity in the long run.
Jane Street has disputed SEBI’s allegations and signaled its intent to contest the ban and appeal through legal channels, including engagement with the Securities Appellate Tribunal.
