The Securities and Exchange Board of India (SEBI) has temporarily barred US-based quantitative trading firm Jane Street from accessing India's securities market over alleged manipulated stock indices through positions taken in India's booming derivatives market.
In an interim order passed early morning on Friday, July 4, the capital market regulator announced that the investigation found unfair trade practices by Jane Street entities by aggressively influencing the underlying cash and futures market with significant volumes.
Jane Street Banned: 5 Key Things To Know
1. What Is SEBI's order against Jane Street?
According to SEBI, Jane Street earned Rs 43,289.33 crore in profits through trading in index options on Indian exchanges between Jan. 1, 2023, and March 31, 2025. SEBI has passed the order as part of an enforcement action. This applies to all Jane Street Group entities operating in India and restricts their ability to trade or participate in any market-related activity.
"Entities are restrained from accessing the securities market and are further prohibited from buying, selling, or otherwise dealing in securities, direct or indirect," said SEBI. The ban will stay in place till a final order on completion of investigations is issued.
Also Read: Jane Street Saga: SEBI Says Enforcement Action Based on Merit, Without Bias | Profit Exclusive
2. What Does SEBI Seek From Jane Street?
SEBI said in its order that it would 'impound' Rs 4,843.57 crore from Jane Street, which were the 'unlawful gains earned' from the alleged misconduct. The market watchdog has asked Jane Street entities to jointly and severally deposit the amount into an escrow account with a scheduled commercial bank in India.
The escrow account must carry a lien marked in favour of SEBI, and the funds cannot be released without the regulator’s approval. SEBI said the ban may be lifted after the escrow amount is deposited. The prohibition is immediate and remains in effect until further directions from SEBI.
3. What Has SEBI Found In Its Probe?
SEBI, in its 105-page order, alleged that Jane Street and its India incorporated entities took large derivative positions to manipulate the Bank Nifty index. According to SEBI, Overall, four of Jane Street entities made a profit of Rs 36,500 crore during the examination period between January 2023 and March 2025.
Jane Street Asia Trading made a profit of Rs 6,929.56 crore, JSI2 Investments Pvt. Ltd's was Rs 168.67 crore, JSI Investments Pvt. Ltd's was Rs 4,104.61 crore, while Jane Street Singapore Pte. Ltd. made a profit of Rs 25,636.62 crore.
4. What Is Jane Street's Response On The SEBI order?
In an emailed response to NDTV Profit, Jane Street's official spokesperson disputed the findings of SEBI's interim order and will further engage with the market regulator. "Jane Street is committed to operating in compliance with all regulations in the regions we operate around the world," it added.
SEBI said in its order that the trading firm can contest the regulator’s “prima facie observations” within 21 days of the receipt of the order. Jane Street specializes in high-frequency trading, ETFs, options and operates globally: New York, London, Hong Kong, Singapore, Amsterdam trading options.
5. SEBI Order's Impact On Banks, Markets
Jane Street Group is one of the most active foreign players in India, the world’s largest derivatives market by contracts traded. Notably, SEBI’s Friday order marks a rare instance where it has imposed a fine on a foreign entity.
Banks have been directed to ensure no debits are made without SEBI’s permission in respect of the accounts held individually or jointly by the entities. According to the Futures Industry Association, India is the world's largest derivatives market, accounting for nearly 60 per cent of global equity derivative trading volumes of 7.3 billion in April.
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