SEBI Bans Jane Street Over ₹36,500 Crore Gains in India

Rapid Summary

• SEBI (Securities and Exchange Board of India) has accused global proprietary trading giant Jane Street group of manipulating the BANKNIFTY index options market in India.
• Allegedly, Jane Street earned over rs 36,500 crore in profits between January 2023 to March 2025 using deceptive trading strategies.
• SEBI’s examination claims Jane Street manipulated index expiry prices by:

– Aggressively buying BANKNIFTY stocks and futures to artificially inflate the index.
– Placing options trades at favorable prices during this inflated period.
– Later crashing the index by selling these stocks, triggering large profits on put options trades.

• Millions of retail investors were misled as the manipulated market signals impacted their trading decisions negatively.
• Despite a caution letter from NSE in February 2025, Jane Street reportedly continued similar practices until May 2025.
• SEBI’s interim order issued under legal authority has barred Jane Street from employing such strategies until further investigation is completed.

Indian Opinion Analysis

This advancement highlights critical vulnerabilities within India’s rapidly growing financial markets, particularly in derivative trading segments like BANKNIFTY index options.alleged manipulation by a well-resourced multinational entity not only undermines trust but also puts retail traders at significant risk due to distorted price signals during expiry days.

SEBI’s actions reflect an attempt to bolster regulatory oversight-crucial for ensuring market fairness as more retail participants engage wiht complex instruments like derivatives. While enforcement against manipulative practices preserves integrity in theory, consistent vigilance and systemic safeguards will be necesary to prevent future occurrences across all scales or entities operating within India’s financial markets.Read More: Republic World Article