INSUBCONTINENT EXCLUSIVE:
anxiety despite no direct accusations against the firm.The Securities and Exchange Board of India (SEBI), in a sharply worded 105-page
interim order, accused Jane Street and its affiliates of using complex high-frequency trading strategies to distort the Nifty 50 and Bank
4,840 crore in allegedly unlawful gains and directed banks to freeze all debit transactions from Jane Street-linked accounts, including
those of JSI Investments Pvt Ltd, Jane Street Singapore Pte Ltd, and Jane Street Asia Trading Ltd.According to SEBI, Jane Street earned Rs
36,500 crore in net profits from the Indian market between January 2023 and March 2025, with Rs 43,289 crore coming from index options
However, SEBI chose to proceed independently with a more forceful stance.The ripple effect extended across the broader capital market stocks
The Nifty Capital Markets index fell 2% on Friday, with Angel One sliding 7% to Rs 2,740, BSE dropping 6%, and CDSL down over 2%.Inside the
bought Rs 4,370 crore worth of Bank Nifty stocks in the morning session to inflate the index artificially, before reversing the trades later
while holding larger bearish options positions
The result: Rs 734.93 crore in profit in a single day.SEBI found that Jane Street used this manipulation strategy on 15 out of 18 trading
imbalance between institutional algorithmic trading and retail investor outcomes
SEBI pointed out that while proprietary and foreign firms earned more than Rs 61,000 crore in FY24 using such strategies, retail investors,
court battle with rival Millennium Management revealed the firm had earned $1 billion from Indian options in 2023
Bloomberg later reported Jane Street made $2.3 billion from Indian equity derivatives in 2024.For now, the SEBI ban on Jane Street signals a
sharper regulatory lens on the practices of global trading giants, and a cautionary tale for the Indian firms linked to them.Also read |
Sebi bars US trading firm Jane Street from Indian markets, orders Rs 4,840 crore freeze over alleged Nifty manipulation(Disclaimer:
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