₹36,500 Cr Stock Market Scam? SEBI Bars Jane Street from Indian Market
SEBI bars Jane Street after a Rs. 36,500 Cr stock market scam probe, shaking up India’s trading landscape.
India’s stock market regulator, the Securities and Exchange Board ofIndia (SEBI) has taken strong action against Jane Street, a well-known American trading firm, for alleged market manipulation in India’s derivatives market. SEBI issued an interim order on July 3, 2025, temporarily barring Jane Street and its related entities from accessing India’s stock market as it investigates what could be one of India’s biggest trading scandals.
Jane Street is a large global trading firm known for its high-frequency and algorithmic trading strategies. According to SEBI’s investigation, Jane Street made a total net profit of Rs. 36,500 crore (~$4.3 billion) in India between January 2023 and March 2025, mainly by trading in index options, particularly in BANKNIFTY and NIFTY.
Complete practical guide to Drafting Commercial Contracts, Click Here
The regulator has alleged that Jane Street manipulated prices on expiry days, the days when derivatives contracts like options and futures expire. SEBI’s findings suggest that Jane Street bought large quantities of BANKNIFTY stocks and futures aggressively in the morning to push the index price higher. At the same time, they took positions in options to benefit from these price movements. Later in the day, they reversed their positions, selling aggressively to push the prices down, making profits on their options positions.
Why is this important? Well, expiry days see high trading volumes, and even small price movements can lead to big gains or losses for traders. SEBI believes Jane Street used its size and speed to take advantage of these price movements, potentially causing losses to retail investors who traded on the opposite side.
Practical Case Studies in Forensic Accounting & Corporate Fraud Investigation - Click Here
SEBI has impounded Rs. 4,843 crore (~$570 million) of alleged unlawful gains from Jane Street. It has stated that if Jane Street is found not guilty after further investigation, these funds will be released. However, if the manipulation is proven, this could lead to further penalties and a permanent ban from the Indian market for Jane Street.
The investigation is ongoing, and Jane Street will have the opportunity to present its side. SEBI’s action sends a strong message about its commitment to protect retail investors and ensure fair practices in India’s fast-growing derivatives market.
This case shows the increasing scrutiny on foreign trading firms in India and may lead to tighter rules on high-frequency and algorithmic trading in the country.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates