₹48,000 Crore Scam? Jane Street BANNED from Indian Markets by SEBI

Mumbai, July 4, 2025 — In a major regulatory crackdown, the Securities and Exchange Board of India (SEBI) has barred U.S.-based quantitative trading giant Jane Street from participating in Indian securities markets, citing allegations of market manipulation. According to SEBI’s interim order, Jane Street and its affiliates engaged in suspicious derivatives trading activity, particularly in Bank Nifty and Nifty options, which allegedly resulted in illicit profits of approximately ₹48,000 crore (around US $570 million). The order claims that the firm orchestrated artificial price movements in the underlying stocks near expiry dates to profit from large option positions—tactics that SEBI believes caused significant losses to retail investors, with an estimated 93% of them ending up in the red.

In response to these findings, SEBI has not only suspended Jane Street’s market access but also ordered the firm to deposit the alleged profits into an escrow account while the investigation continues. The market reacted sharply to the news, with shares of domestic brokers and market intermediaries tumbling. Notably, Angel One dropped by nearly 6%, BSE by 6.4%, and Central Depository Services by 3.5%. Jane Street’s Indian partner, Nuvama Wealth, saw its stock fall by more than 9% in early trading.

This action follows a multi-year investigation sparked by unusual trading patterns and high-frequency gains in the derivatives market. Jane Street reportedly earned over US $2.3 billion from Indian equity derivatives in 2024 alone, drawing SEBI’s attention to its trading strategies. While SEBI asserts this intervention is necessary to protect market integrity and curb manipulation, Jane Street has denied wrongdoing and stated that it will cooperate fully with the regulator. The firm has 21 days to respond formally to the charges.

Though this development may temporarily impact market volumes and liquidity, analysts suggest it could strengthen investor confidence in the long run. India’s derivatives market—one of the world’s largest—remains under close watch, and SEBI’s aggressive stance signals a broader effort to ensure transparency and fairness in trading practices.