INSUBCONTINENT EXCLUSIVE:
the Nifty and Bank Nifty indices, generating enormous profits from derivatives trades.Also Read:Make $1 billion loss in stock futures to
earn $5 billion profit in options: Sebi exposes Jane Street's Baazigar strategy
Live EventsRs 36,500 crore in profits under the lensSEBI
said Jane Street earned an estimated Rs 36,500 crore in profits between January 2023 and March 2025, with Rs 43,289 crore coming from index
options alone, according to National Stock Exchange data
India in December 2020, has been granted 21 days to file objections or challenge the order before the Securities Appellate Tribunal.Complex
trades, massive profitsIn a detailed 105-page order, SEBI accused the Jane Street Group (JS Group) of deploying high-volume, cross-segment
strategies designed to mislead retail traders and manipulate index levels on expiry days
The alleged manipulation included simultaneous activity across the cash equity, futures, and options segments.SEBI highlighted one key
shares on the morning of January 17, 2024, to artificially push the index up
The firm then reversed these trades by aggressively selling later in the day while holding substantial bearish positions in index options
On that day alone, Jane Street earned Rs 734.93 crore in profit from Bank Nifty options, the regulator said.SEBI found that out of 18
three.Also Read: Explained: What is Jane Street and how it made Rs 36,500 crore profit by gaming Dalal StreetIgnored warnings, regulator
saysSEBI also flagged that Jane Street continued using these tactics even after receiving a cautionary letter via the NSE in February 2025
trading pattern of the JS Group as prima facie being manipulative is the intensity and sheer scale of their intervention in the underlying
Jane Street's trades led retail traders to act on misleading index levels
levels, thereby benefiting short Call or long Put positions.SEBI presses ahead, even as NSE closed probeWhile the National Stock Exchange
attention after a legal dispute with Millennium Management in the U.S
revealed it earned $1 billion from Indian options in 2023 alone, Bloomberg had reported
the widening gap in outcomes between institutional and retail participants in the booming Indian options market
In FY24, foreign and proprietary traders earned more than Rs 610 billion through algorithms and high-frequency trades, a near mirror image
of what retail investors collectively lost, the order said.Also read | Sebi bars U.S
trading firm Jane Street from Indian markets, orders Rs 4,840 crore freeze over alleged Nifty manipulation(Disclaimer: Recommendations,
suggestions, views and opinions given by the experts are their own
These do not represent the views of the Economic Times)
