SEBI order on Jane Street Highlights: India’s capital markets regulator, the Securities and Exchange Board of India (SEBI), has taken strict action against global trading firm Jane Street Group and its related entities. In an interim order issued on July 3, SEBI barred the group from participating in the Indian securities market, citing serious violations of market norms.
The market regulator has estimated that the alleged unlawful profits made by the Jane Street entities amount to Rs 4,843 crore. The regulator has directed the group to deposit the entire sum into an escrow account with a scheduled commercial bank in India.
The ban restricts Jane Street and its affiliated entities from buying, selling, or dealing in any securities, either directly or indirectly until further notice. SEBI’s preliminary findings suggest that the entities engaged in suspicious trading activity that led to unfair gains, raising concerns about market manipulation and regulatory breaches.
SEBI Jane Street Group Live Updates
SEBI order on Jane Street live updates: Interim order against Jane Street not a show-cause notice; probe still ongoing
The interim order issued by SEBI in the index manipulation case involving the Jane Street Group where the regulator directed the recovery of ₹4,843.57 crore should not be seen as a show-cause notice, according to SEBI sources. They added that the investigation into the US-based investment firm is still ongoing.
Jane Street Group LLC is a global proprietary trading firm founded in 2000, operating across the U.S., Europe, and Asia with over 2,600 employees. It trades in 45 countries and provides services through various regulated entities. In the U.S., Jane Street Capital, LLC and Jane Street Execution Services, LLC are SEC-registered broker-dealers and FINRA members. In Europe, Jane Street Financial Limited (UK) and Jane Street Netherlands B.V. operate under their respective financial regulators. Jane Street Hong Kong Limited is regulated by the Hong Kong Securities and Futures Commission. All entities are wholly owned subsidiaries of Jane Street Group, LLC.
SEBI order on Jane Street live updates: SEBI states Jane Street made ₹36,671 Cr in Bank Nifty trades, ₹4,843 Cr illegally
According to SEBI’s findings, Jane Street engaged in aggressive trading of Bank Nifty derivatives on expiry days to generate massive profits. The firm and its related entities would reportedly make heavy purchases of Bank Nifty futures in the cash segment while simultaneously offloading large volumes of Bank Nifty options during the morning session.
By the afternoon, they would reverse their positions aggressively selling Bank Nifty futures to lock in substantial gains.
SEBI’s calculations estimate that between January 2023 and May 2025, Jane Street and three associated entities earned profits totaling ₹36,671 crore. Of this, the regulator considers ₹4,843.5 crore (approximately $566.3 million) to be illegal gains arising from manipulative trading.
SEBI has sharply criticised US-based trading firm Jane Street Group for continuing manipulative practices in Nifty 50 derivatives despite a prior warning. According to the regulator, the National Stock Exchange (NSE) had issued an “explicit advisory” to the firm in February 2025, cautioning against such trading behaviour.
However, SEBI noted that the group repeatedly engaged in manipulative trades even after the advisory, raising serious concerns about its conduct.
“This kind of egregious behaviour, in blatant defiance of NSE’s advisory, clearly shows that unlike the vast majority of Foreign Portfolio Investors and other market participants the Jane Street Group is not acting in good faith and cannot be trusted,” SEBI stated in its order.
SEBI order on Jane Street live updates: Shares of broking firms slide amid SEBI crackdown on Jane Street
Shares of stockbroking firms like Nuvama Wealth and Angel One, along with leading stock exchange BSE and depository CDSL, fell sharply on Friday amid fears of potential business fallout following a major regulatory action.
SEBI has barred US-based Jane Street Group from accessing the Indian securities market and ordered the firm to disgorge ₹4,843 crore in alleged unlawful gains for manipulating stock indices through the derivatives segment.
The ₹4,843 crore disgorgement could be the highest ever imposed by SEBI in a single case.
SEBI order on Jane Street live updates: Jane Street used Blue-Chip stocks to sway Nifty Index
According to SEBI, Jane Street allegedly used several heavyweight Nifty 50 stocks to influence index levels. These included Reliance Industries, Infosys, HDFC Bank, ICICI Bank, Tata Consultancy Services (TCS), HDFC Life Insurance Company, Axis Bank, ITC, Larsen & Toubro, and Kotak Mahindra Bank.
SEBI order on Jane Street live updates: What did SEBI order say?
In its interim order, SEBI has barred JSI Investments, JSI2 Investments Pvt Ltd, Jane Street Singapore Pte Ltd, and Jane Street Asia Trading, collectively known as the Jane Street Group from trading until further notice, as its investigation continues.
The regulator has accused the Jane Street Group of manipulating index levels in the stock market to earn unlawful profits, primarily through the highly liquid Bank Nifty and Nifty index options segments.
SEBI order on Jane Street live updates: Updates on mirror and paired trades
SEBI has raised serious concerns about global trading firm Jane Street, accusing it of manipulating the Indian derivatives market through a high-frequency trading strategy known as mirror trading. Under this method, various Jane Street entities allegedly placed identical buy and sell orders at the same time and price in Nifty and Bank Nifty futures and options. These trades, executed within the group itself and reversed within seconds, did not appear to serve the usual purposes of risk hedging or liquidity provision. Instead, SEBI suggests the strategy was designed to influence or stabilise market prices without taking on actual market exposure.
The regulator’s probe revealed that a significant portion of these trades occurred during the monthly and weekly expiry sessions—key moments when derivative contracts are settled. Notably, Jane Street is accused of placing large orders in the final minutes of trading during these sessions, allegedly to sway the closing prices of the indices. This, SEBI claims, manipulated the settlement prices of derivative contracts and enabled the firm to earn disproportionately large profits.
SEBI order on Jane Street live updates: Which segments did the Jane Street Group incur losses in?
According to the SEBI order, Jane Street incurred a cumulative loss of ₹7,687.21 crore during the period in question. The majority of these losses were in the stock futures segment, amounting to ₹7,208 crore, followed by ₹190.81 crore in index futures and ₹288.17 crore in cash equities. Despite these losses, the firm reported a substantial overall profit of ₹36,502 crore during the same period.
SEBI order on Jane Street live updates: How did Jane Street manipulate stocks ?
On January 17, 2024, Jane Street was alleged to have manipulated the Bank Nifty index by strategically trading its key constituents. The firm reportedly invested in stocks such as HDFC Bank, Axis Bank, ICICI Bank, State Bank of India, IndusInd Bank, Kotak Mahindra Bank, Federal Bank, IDFC First Bank, Bank of Baroda, AU Small Finance Bank, Canara Bank, Punjab National Bank (PNB), and Bandhan Bank during the morning session. This was followed by significant sell-offs in the afternoon, raising suspicions of profit booking through index-level manipulation.
SEBI order on Jane Street live updates: What retail investors should watch as regulators crack down on index manipulation
SEBI has barred U.S. trading giant Jane Street from accessing Indian markets over alleged index manipulation. In an interim order, the regulator has moved to impound ₹4,843 crore in purported unlawful gains and directed the firm to deposit the amount into an escrow account with a scheduled commercial bank in India. While Jane Street has been given three months to wind down its existing positions, the bigger question remains: what does this mean for Indian investors?
SEBI order on Jane Street live updates: About Jane Street
Jane Street Group LLC is a global proprietary trading firm founded in 2000, operating across the U.S., Europe, and Asia with over 2,600 employees. It trades in 45 countries and provides services through various regulated entities. In the U.S., Jane Street Capital, LLC and Jane Street Execution Services, LLC are SEC-registered broker-dealers and FINRA members. In Europe, Jane Street Financial Limited (UK) and Jane Street Netherlands B.V. operate under their respective financial regulators. Jane Street Hong Kong Limited is regulated by the Hong Kong Securities and Futures Commission. All entities are wholly owned subsidiaries of Jane Street Group, LLC.
Nitin Kamath, CEO of Zerodha weighs in on SEBI's Jane Street crackdown. The regulatory board has taken strong action against Jane Street over alleged market manipulation, especially since the firm reportedly continued its practices even after warnings from exchanges. Kamath claims that the incident derives a stark contrast between India's strict regulatory environment and the more lenient U.S. system, which permits practices like dark pools and payment for order flow, tools that benefit large hedge funds at the expense of retail investors.
He claims that while SEBI’s crackdown has to be appreciated, this could be a bad news for both exchanges and brokers. This is because proprietary trading firms like Jane Street contribute to nearly 50% of options trading volumes in India. If such firms pull back, which now seems likely, it could lead to a significant drop in retail trading activity (which makes up 35%). This decline would negatively impact trading volumes overall hurting both stock exchanges and brokerage firms.
SEBI order on Jane Street live updates: Jane Street’s multi-entity strategy in India
Jane Street, the global proprietary trading fire, maintains a strategic presence in India through a network of four group entities, two incorporated locally and two operating out of Hong Kong and Singapore. These overseas arms are registered as Foreign Portfolio Investors (FPIs) with SEBI, allowing them to participate in Indian markets. Jane Street first entered India in December 2020 with the setup of its initial on-ground unit. Since then, the firm has steadily scaled up operations, leveraging its high-frequency and quantitative trading expertise. The India-based entities primarily support back-end operations, research, and compliance, while the offshore FPIs conduct trading activities particularly in the derivatives segment through coordinated strategies.
SEBI order on Jane Street live updates: Stocks manipulated by Jane Street
On January 17, 2024, Jane Street is alleged to have manipulated Bank Nifty constituents to book profit. HDFC Bank, Axis Bank, ICICI Bank, State Bank of India, IndusInd Bank, Kotak Mahindra Bank, Federal Bank, IDFC First Bank, Bank of Baroda, AU Small Finance Bank, Canara Bank, Punjab National Bank (PNB), and Bandhan Bank are the stocks in which Jane Street put money during the morning trade, followed by large-scale afternoon sell-offs.
SEBI order on Jane Street live updates: What happens to existing open positions
SEBI has banned Jane Street from accessing India securities market. The big question is what happens to its existing open positions? Accordimg to the SEBI order, "entities have any open position(s) in any exchange traded derivative contracts, as on the date of this Interim order, they can close out/square off such open positions within 3 months from the date of the order or at the expiry of such contracts, whichever is earlier."
SEBI has granted Jane Street permission to settle the pay-in and pay-out obligations in respect of transactions, if any, that have taken place before the close of trading on the date of this order. Banks, custodians, and depositories are allowed to debit the accounts for the purpose of complying with this direction.
SEBI order on Jane Street live updates: What segments did JS Group incur losses in?
As per the SEBI order, Jane Street's cumulative loss in this period was Rs 7,687.21 crore.
Its losses in the following segments are:
-Stock Futures: Rs 7,208 crore
-Index Futures: Rs 190.81 crore
-Cash Equities (in stocks): Rs 288.17 crore.
Meanwhile Jane Street earned Rs 36,502 crore profit in this period.
SEBI order on Jane Street live updates: Unlawful gains Vs Profit
The SEBI order clearly highlights the difference between 'unlawful gains' and 'total profit'
As per the SEBI order, Rs 4.843.57 crore has been identified as "unlawful gains." This is because as per SEBI this has been earned from the 21 alleged violations undertaken by the JS Group. These were earned using two key manipulative strategies.
-'Intra-day Index Manipulation'
-'Extended marking the close' strategy
According to SEBI, these 'unlawful gains' is part of the total profit earned by them. The SEBI analysis focussed on specific days and the profit from these manipulative strategies were primarily booked in Index Option segments.
Therefore, from the total profit that Jane Street earned in this period, amounting to Rs 36,502 crore, Rs 4,843.57 crore was unlawful.
SEBI order on Jane Street live updates: How much profit did Jane Street earn from “Extended Marking The Close” Strategy?
The SEBI order highlighted that by employing the “Extended Marking The Close” strategy, Hane Street Group earned profit to Rs 560 crore from the Bank Nifty Options.
This was part of the 2 main strategies that Jane Street employ to earn profits. These two strategies are -
1. "Intra-day Index Manipulation" strategy: It earned profit of Rs 3,914 crore across all the 15 days that this strategy was employed between January 2024- March 2025.
2. “Extended Marking The Close” strategy: It earned profit of Rs 560 crore from Bank Nifty, using this strategy on 3 days between October 4, 2023- July , 2024.
However, the total profit earned by Jane Street from all its trading activities was about Rs 36,502.2 crore in this entire period.
SEBI order on Jane Street live updates:What is “Extended Marking The Close” Strategy
Another key strategy that Jane Street used involved the “Extended Marking The Close” strategy. According to the SEBI order, as per this strategy, "a different pattern from the earlier “Intraday Index manipulation pattern' was observed on July 10, 2024, and two other days, all of which also happened to be a Bank Nifty expiry day."
In this the JS Group trading platform, on a low-volume, non-directional trading day, aggressive and large directional intervention in Index constituent stocks and futures was undertaken to move the market in a direction favourable to the large open positions in Index Options.
This eventually led to the Index closing at a favourable level for the large positions of JS group in index options. Profits were booked in the Index.
SEBI order on Jane Street live updates: Circular trading and artificial volumes
India’s market watchdog SEBI has accused global trading firm Jane Street of using circular trading tactics to manipulate the Indian derivatives market. According to SEBI, Jane Street placed back-to-back trades between its own group entities, creating an illusion of high market activity and liquidity. These trades did not carry any real economic risk or purpose, nor did they involve outside parties. Instead, they were structured to deceive the market by artificially boosting trading volumes and influencing prices.
SEBI’s findings concluded that these deceptive strategies significantly distorted market prices, especially during contract settlement periods. As a result, Jane Street allegedly made unlawful profits totaling Rs 4,843 crore (around $570 million). In response, the regulator has ordered this amount to be seized and placed in an escrow account, secured with a lien in SEBI’s favor, as part of the ongoing investigation.
SEBI order on Jane Street live updates: Mirror and paired trades
India's market regulator SEBI has flagged global trading firm Jane Street for allegedly manipulating the Indian derivatives market using a high-frequency strategy called mirror trading. In this method, Jane Street entities placed buy and sell orders in Nifty and Bank Nifty futures and options at the exact same time and price essentially taking opposite positions within their own group. These trades were reversed within seconds and, according to SEBI, were not aimed at hedging risk or providing liquidity. Instead, the intent appeared to be shifting or stabilising prices without taking on any real market exposure.
SEBI's investigation also found that a large part of this activity occurred during monthly and weekly expiry sessions, where derivative contracts are settled. During these sensitive windows, Jane Street allegedly placed large orders in the final minutes of trading to influence the closing prices of indices. This, in turn, impacted the settlement price of derivative contracts and helped the firm earn outsized profits.
SEBI order on Jane Street live updates: SEBI allegations and investigation
Global trading powerhouse Jane Street Group is in hot water in India. According to SEBI, the firm used high-frequency trading strategies in the Indian derivatives market that were “manipulative and unlawful.”
Between January 2023 and March 2025, Jane Street reportedly earned a Rs 4,843 crore from these questionable trades alone. That is just a slice of the total Rs 43,289 crore the firm is said to have made from its India operations during this period.
Jane Street did not operate through just one company here. SEBI said that the group used several foreign portfolio investors (FPIs) registered in India including Jane Street Asia Trading, Jane Street India Trading Pvt Ltd, and Jane Street Asia LLC.
While these entities are legally separate, SEBI found that they were all working in perfect sync, under a common management. Their trades were highly coordinated, making them look like they were acting as one - a practice the regulator flagged as “suspiciously synchronized.”
The Nuvama share price plunged to an intraday low of Rs 7,621 per share and is trading around 5% lower in trade today. This is after SEBI banned US-trading giant Jane Street from accessing the Indian securities market.
The reason it impacts Nuvama is because, Nuvama is Jane Street’s domestic trading partner in India. This is according to the Bloomberg report. However, there is no direct link, and just to remind our readers, there is no mention of the firm in the SEBI order Investors are taking up more of a cautious stance on this.
As per the SEBI order on Jane Street, the US trading giant used to buy huge amount of Bank Nifty futures in cash segment and sell then went on sell Bank Nifty options the next morning.
According to the SEBI note, Jane Street aso used “Intra-day Index Manipulation” strategy, which influenced the Bank Nifty closing rates on expiry day.
The SEBI note gave example of Januart 17, 2024 trading to highlight the manipulation- On January 17, 2024, Bank Nifty saw a sharp drop at open, from previous close of 48,125.10 to an open of 46,573.95. Media reports claimed that this fall may be attributed to the market’s apparent disappointment with the results announced by HDFC Bank after market close on January 16, 2024.
However, in an otherwise falling market, JS Group net purchases Rs 4,370.03 crores of Bank Nifty constituents in cash and futures markets, significantly higher than average trading volume. "The purchases were aggressive, in a manner that tends to push up prices," SEBI noted.
As this action puhsed up Bank Nifty prices, Put options on the index become cheaper, while call options became expensive. JS Group, meanwhile, built large shorts.
However, later in the day, JS Group reversed and sold practically all of the net cash/ futures positions in Bank Nifty constituent stocks that were bought earlier in the day.
As a result, Put options now rise in value, Call options drop in value – reversing the artificial moves in the first patch
SEBI order on Jane Street live updates: Impact of SEBI order on Indian markets
Market veteran Ajay Bagga said, "The 105-page SEBI interim order barring Jane Street group entities from the Indian securities markets will be watched for a market moving impact on derivatives volumes and volatility both."
He added that, "overall Indian markets are in a consolidation phase, with an oversupply of both IPOs and promoters selling their stakes sucking out liquidity from the secondary markets. Trump tariffs and earnings numbers will determine the direction of the markets going ahead."
SEBI order on Jane Street live updates: Chronology of events
A look now at the chronology of the SEBI probe
April 2024: SEBI carried out an analysis based on media reports
July 23, 2024: NSE asked to examine trading activity of JS Group to ascertain if any market abuse was involved.
August 2024: SEBI interacted with JS Group on August 20, 2024 and JS Group provided its written submission dated August 30, 2024 to SEBI explaining their trades.
October 1, 2024: SEBI separately issued policy steps to address overtrading in index options on expiry day.
November 13, 2024: NSE report on JS Group’s trading activity submitted.
December 2024: SEBI noted that, "certain entities consistently running what appeared to be by far the largest risks in ‘cash equivalent’ terms in F&O particularly on expiry days.
February 4, 2025: The market regulator noted that prima facie, JS Group appeared to be engaging in activities in violation of SEBI PFUTP regulations.
February 6, 2025: NSE, on SEBI’s instructions, issued a caution letter to Jane Street Singapore and its related entity, JSI Investments, advising them to refrain from taking large (cash-equivalent) positions and to refrain from undertaking certain trading patterns.
May, 2025: Jane Street Group was observed to continue to run very large ‘cash equivalent’ positions in index options, despite the caution letter.
SEBI order on Jane Street live updates: What is Jane Street?
Jane Street Group is a proprietary trading firm that focuses on high-frequency and quantitative strategies. It is active across multiple asset classes, including equities, bonds, ETFs, and derivatives. The firm uses algorithm-driven systems to trade at scale in global markets. In India, Jane Street has been steadily increasing its presence, particularly in the derivatives segment.
SEBI order on Jane Street live updates: What does SEBI order state
The market regulator, SEBI has restrained Jane Street Group from accessing the local securities market. According to SEBI order, Jane Street and its associates used trategies to artificially influence Nifty 50, the key benchmark index. Additionally, SEBI has impounded alleged illegal gains worth Rs 4,843 crore.
SEBI has also directed banks to ensure that “no debits are made without permission.”
SEBI order on Jane Street live updates: SEBI order background
The SEBI order highlights the background of the report and states that the initial trigger for the probe was based on media reports titled ‘Jane Street-Millennium Suit: ‘Secret’ Strategy Concerns India, Hearing Reveals’ and ‘Ex-Jane Street trader pillories claims he stole trade secrets’, published during April 2024. It was mentioned in these repirts that Jane Street and its associated entities alleged unauthorised use of their proprietary trading strategies in Indian options markets.
Based on these SEBI initiated preliminary examination into trading activity of Jane Street and associated entities.