Jane Street deposits ₹4,843 Crores to Escrow Account with SEBI Lien in Alleged BANKNIFTY Manipulation Case [Read Press Release]

The Securities andExchange Board of India (SEBI) has issued an update on the Jane Street market manipulation issue involving a ginormous ₹36,500 crore. Consequent to the proceedings and an interim order issued by SEBI, Jane Street - a prominent global trading firm from America has deposited ₹4,843 crore into an escrow account under a lien in favour of SEBI.

SEBI had taken action against Jane Street following allegations of large-scale market manipulation involving Bank Nifty (BANKNIFTY) index options. The case captured headlines since SEBI initiated its investigation into what has been described as a ₹36,500 crore stock market scam, leading to a temporary ban on Jane Street and related entities from trading in Indian markets.

Jane Street, often deemed as a ‘market-maker’ is well-known for its sophisticated high-frequency and algorithmic trading operations. The key allegations raised against Jane Street surround manipulation of index prices on expiry days, specifically on the days that derivatives contracts like options and futures expire and trading volumes peak.

According to SEBI’s findings, Jane Street engaged in aggressive buying of BANKNIFTY stocks and futures early in the expiry day trading sessions to push prices higher, while simultaneously taking positions in options that would benefit from those price movements.

Later in the day, Jane Street would allegedly reverse these trades by selling aggressively to push prices down while profiting on the options side. SEBI findings opined that such an exercise allowed Jane Street to extract significant profits while potentially causing losses to retail investors on the other side of these trades.

SEBI’s investigation revealed that Jane Street amassed net profits of around ₹36,500 crore from trading in India between January 2023 and March 2025, primarily through index options in BANKNIFTY and NIFTY. In light of the events, SEBI directed the escrow of ₹4,843 crore, the amount alleged to have been unlawfully gained by Jane Street.

SEBI, through the formal clarification published on July 14, 2025 has maintained that the funds have been deposited by Jane Street without prejudice to its legal rights and remedies, and that the release or forfeiture of the disputed funds shall lay consequent to the outcome of the ongoing proceedings.

SEBI has further noted that Street has requested the lifting of certain conditional restrictions under the interim order, a request SEBI is currently examining.

The situation currently remains under investigation as Jane Street prepares to present its case before the regulator.

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