The Securities and Exchange Board of India (SEBI) has barred U.S.-based investment firm Jane Street and its affiliated entities from participating in Indian securities markets for allegedly manipulating the Bank Nifty index and unlawfully earning ₹4,843.6 crore. The interim order, issued on July 3, 2025, explains how Jane Street engineered a complex trading scheme to distort market prices and mislead retail investors.

How Jane Street manipulated the market

According to the SEBI order, the Jane Street Group, comprising JSI Investments, JSI2 Investments, Jane Street Singapore, and Jane Street Asia Trading manipulated the Bank Nifty index, which tracks 12 major banking stocks. On days when the index was falling, the group bought ₹4,370 crore worth of Bank Nifty stocks and futures, temporarily propping up the index. Later the same day, the group reversed its trades by aggressively selling those holdings, thereby pushing the index back down.

ALSO READ

Meanwhile, Jane Street had created bearish positions worth ₹32,114.96 crore in Bank Nifty options, buying cheap put options and selling expensive call options. As the prices fell due to the group’s aggressive selling, it incurred losses on the futures side but made significant profits on the options trades, effectively profiting from the manipulated fall in the index. SEBI has directed the group to deposit the alleged unlawful gains in an escrow account and prohibited banks and depositories from allowing any debit transactions in their accounts without regulatory approval. Jane Street and its associated entities have been given 21 days to respond to the order. The investigation is ongoing.

ALSO READ

Social media erupts with memes

Internet was flooded with memes soon after the order. A user said, “Scenes from Jane Street headquarters.” Another added,Traders to SEBI!”

A trade enthusiast noted, “Retailers After Knowing SEBI has banned Jane Street Boyzz from Indian Market.” “Jane Street Vs Retail Traders,” added a user.”Some stock guys are amazed with the strategy of #JaneStreetGroup. A 1000% speculative position above the hedging limit is nothing but front-running when retailers are feeling threatened with stringent regulations. #ThisIsStockMarketScam #nifty,” noted another.